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The week that was in property

The Reserve Bank (RBA) published its monthly financial aggregates data for January 2017 earlier this week.RBA

The data showed that total credit advanced by 0.2% over the month to be 5.4% higher over the past year.

The monthly changes were recorded at +0.5% for housing credit, -0.2% for other personal credit and -0.3% for business credit.

Over the past year, housing credit has increased by 6.4%, other personal credit has fallen by -1.3% and business credit is 4.7% higher.

The financial aggregates break housing credit down further into owner occupier and investor credit.

Owner occupier credit advanced 0.5% in January 2017 and is 6.3% higher over the past year.  

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Investor credit increased by 0.6% over the month to be 6.6% higher over the past 12 months.

The 0.6% monthly increase in investor credit was the slowest rate of monthly growth in four months.

On an annual basis, investor credit continues to climb and has increased at its fastest pace in 12 months.

Owner occupier credit has risen at its slowest annual pace since September 2015 over the past year.

The Australian Prudential Regulation Authority published December 2016 quarterly data earlier this week on property exposures by authorised deposit-taking institutions (ADIs).

The data provides valuable insight into historic and new lending for residential property.

In terms of new lending over the quarter, there was a 6.3% increase in the value of mortgage lending.  loan value ratio percent property bank lend money

Looking at the types of lending and the change over the quarter; there was a 5.4% increase in low-documentation lending, a 7.8% increase in interest-only lending, a 10.5% lift in other non-standard loans and a 4.4% increase in loans approved outside of serviceability.

In terms of the loan to valuation ratio (LVR) of new loans over the quarter, 24.9% of total lending was for LVRs below 60%, 52.7% of total lending was at an LVR of between 60% and 80%, 14.5% of lending was for LVRs of 80% to 90% and 7.9% for LVRs of 90% or greater.

In terms of total lending, a record low 7.9% of new mortgages over the quarter had an LVR of more than 90% while 77.6% of loans written had an LVR of less than 80%.

week1

CoreLogic collected results for 87.2% of the capital city auctions held over the past week.

Based on these results, the combined capital city auction clearance rate was recorded at 78.4% across 3,301 auctions. sold sale

Clearance rates were higher over the week from the 74.9% clearance across 2,291 auctions the previous week.

Last week’s clearance rate was the highest since the week ended June 7 2015.

Melbourne’s auction clearance rate rose from 75.7% the previous week to 81.0% last week while auction volumes increased to 1,635 from 1,091.

In Sydney, clearance rates eased slightly from 80.6% to 80.0% while auction volumes increased from 856 to 1,210.

Compared to clearance rates a year ago, each market except for Perth and Tasmania recorded higher clearance rates this week.

week2

Note that sales listings are based on a rolling 28 day count of unique properties that have been advertised for sale.

The number of newly advertised and total residential properties listed for sale has continued to rise over the past week however, both measures remain lower than they were a year ago. map australia

Over the 28 days to 26 February, there were 48,737 newly advertised properties for sale and 231,228 total advertisements.

The number of new properties for sale nationally is -2.9% lower than a year ago while the total number for sale is -8.1% lower than a year ago.

Across the combined capital cities, the 30,584 newly advertised properties for sale is -1.7% lower than a year ago while the 105,267 total properties for sale is -3.4% lower over the year.

Brisbane (+0.7%), Hobart (+8.1%) and Canberra (+34.0%) were the only cities to have a greater number of new properties for sale than a year ago.

Brisbane (+6.6%) and Perth (+2.5%) are the only two cities that currently have a greater number of total properties available for sale relative to a year ago.



Want more of this type of information?


Tim Lawless

About

Tim heads up the Core Logic RP Data research and analytics team, analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au


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