The Australian Prudential Regulation Authority (APRA) released it quarterly data on authorised deposit-taking institution’s (ADI) exposure to property for June 2014.
This week’s RP Data Research Blog covers off on this data in detail however it is important to re-iterate some of the more important findings. 66.2% of all outstanding mortgages were to owner occupiers with the remaining 33.8% to investors.
The value of owner occupier mortgages has risen by 7.5% over the year compared to a 10.9% rise in investor mortgages. Of these outstanding mortgages, 36% have an offset facility and 35.7% are interest-only.
The average balance on these mortgages is $237,200 with loans with an offset facility ($282,900) and interest-only mortgages ($299,000) having a higher average amount outstanding.
Over the June quarter, a record high 43.2% of all loans approved were interest-only and a record high 3.7% of mortgages were approved outside of serviceability.
New loans with a loan to value ration (LVR) of more than 80% accounted for 33.8% of loans over the quarter, down from 34.7% the previous quarter.
The Australian Bureau of Statistics (ABS) released data on construction work over the June 2014 quarter earlier this week. Over the quarter, construction work was -1.2% lower and year-on-year it is -0.6% lower.
Engineering construction work has fallen by -5.6% over the year while residential construction work is up 9.6% and non-residential is up 2.9%.
Combined, residential and non-residential construction account for just 42.8% of total construction work and with engineering construction slowing it is likely construction work done will continue to trend lower over the coming quarters.
The ANZ-Roy Morgan Australian Consumer Confidence Index release for this week showed that confidence increased by 0.9% to 113.5 points. The rise takes the index above it’s long-run average level.
ANZ reported that the improvement in the index was almost entirely driven by a significant 11.1% rise in household perceptions about their financial situation compared to a year ago.
This seems to suggest that consumers believe economic conditions are improving which may in-turn flow through to increased spending by consumers.
Weekly Clearance Rates
Auction clearance rates fell slightly over the last week with the capital city weighted average clearance rate recorded at 69.5%, compared to 70.8% over the previous week.
There were 1,695 auctions held over the week compared with 1,572 over the same week a year prior, auction numbers were also up from 1,569 the previous week. RP Data collected 82% of all auction records.
The major auction markets of Sydney and Melbourne continued to record healthy auction results. Sydney’s clearance rate was 76.1% across 506 reported auctions, which was slightly higher than the clearance rate of 76.2% the previous week.
Melbourne’s auction market recorded a clearance rate of 70.7% across 658 collected auction results. The clearance rate in Melbourne last week was down from 73.3% the previous week.
Weekly Advertised Listings
Over the four weeks to 24 August, there were 33,266 newly advertised properties listed for sale nationally (excluding WA). New listing numbers are slowly trending higher in the lead up to the start of Spring.
Nationally (exc. WA), new listings are -4.2% lower than a year ago, while across the combined capital cities new stock being added to the market is -1.5% higher than at the same time last year.
There are currently 204,126 properties listed for sale across the country (excluding WA). Total listings at a national level were -7.3% lower compared with the same time last year. Across the combined capital cities, total listings remain -13.2% lower than a year ago, highlighting that total stock levels have reduced over the year.
Note that sales listings are based on a rolling monthly count of unique properties that have been advertised for sale.
*We are currently experiencing some issues with the sourcing of our WA listings data. Our data team is looking into this as a matter of priority however, we have moved WA results from this week’s results and will re-issue when they are revised.
Number of homes for sale*
Residential property listings advertised for sale over the four weeks ending 24/08/2014