The Australian Prudential Regulation Authority (APRA) released a raft of new data earlier this week which was very specific to the residential housing market.
The new data release looks specifically at Authorised Deposit-taking Institutions (ADIs) and their exposure to property. The 165 ADIs in operation in Australia had a total of $1.127 trillion in outstanding residential loans at the end of the June 2013 quarter.
Of these 165 ADIs, 27 have more than $1 billion in residential loans outstanding, accounting for 98.1% of all outstanding residential loans across 4,822,800 outstanding loans.
Of these 4.82 million loans, 28.1% have an offset facility, 77.7% have a redraw facility and 26.8% are interest only loans. Only 0.6% of all loans are reverse mortgages and 4.2% are low-documentation loans.
Across these 27 ADIs, the average outstanding amount on residential loans is $229,500. Across these same 27 ADIs, there were 79,012 new residential loans approved over the June 2013 quarter.
[sam id=34 codes=’true’]Of these new loans, 67.3% had a loan to value ratio (LVR) of less than 80% while 13.5% on new loans had an LVR of more than 90%.
The Housing Industry Association (HIA) – Commonwealth Bank (CBA) Affordability Index results for the June 2013 quarter were released earlier this week.
The results showed a 4.4% quarterly increase in the index over the quarter, reaching a level of 72.8 points. The increase points to increasing affordability levels and given the recent home value increases it indicates that the recent mortgage rate cuts are improving affordability by a greater amount than the recent value rises.
The Index reports on each capital city other than Darwin and the index rose across each one of them, up 10.4% in Brisbane, 10.0% in Hobart, 7.7% in Adelaide, 4.1% in both Perth and Canberra, 3.3% in Sydney and 2.2% in Melbourne.
National Auction Clearance Rates
The weighted average auction clearance rate over the past week was recorded at 70.0% across 1,572 with clearance rates down from 70.4% the previous week but with auction volumes rising from 1,470 the previous week.
The major auction markets of Melbourne and Sydney continued to record a strong rate of successful auctions. Melbourne’s clearance rate over the week was up from 71.0% across 668 auctions over the previous week, to 76.2% across 712 auctions last week.
In Sydney, auction clearance rates were recorded at 75.3% last week across 557 auctions, down from 77.1% the previous week across 568 auctions. RP Data is currently anticipating 1,776 capital city auctions over the current week.
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