Market update ? July 14- 2011Housing finance data was released...

Market update ? July 14- 2011
Housing finance data was released this week for May 2011 by the Australian Bureau of Statistics (ABS). While we focus on this data in detail in this
week?s blog, the headline figures showed some improvement in the number of new mortgages being issued across Australia. The total value of housing
finance commitments to owner occupiers increased by 2.2% for the month and are up 5.2% compared to the same time last year. The total value of
investor finance commitments increased by 4.4% for the month however, the value of investment loans remain -12.0% lower than the same time last year.
The total number of owner occupier finance commitments increased by 4.4% during the month and are up 4.0% over the year. The rise in owner occupier
finance commitments is largely due to refinances which have increased by 11.4%during May and are 25.0%higher over the year.
Westpac and the Melbourne Institute released the July results of their monthly Consumer Sentiment Survey this week. The main Property Pulse article
covers off on this data release however, at a headline level, the Consumer Sentiment Index fell to 92.8 points and by -8.3% during July. The index is now
indicating that respondents are more pessimistic than optimistic and the index was at its lowest level since May 2009.
The Reserve Bank (RBA) released their monthly credit and debit card statistics for May 2011 this week. The data showed that consumers are continuing
to pay down their outstanding debt on their credit cards with the typical outstanding debt at $3,323, down -0.1% over the month and increasing by just
2.3% over the year. The total number of purchase transactions on credit cards rose by 8.5% over the past year compared to an increase in debit card
purchase transactions of 19.4%. The results highlighted that consumers were wary of excessive debt, preferring to use debit cards for purchases rather
than credit.
During the week ending July 10, there were 1,067 capital city auctions and across these auctions the weighted average clearance rate was recorded at
48.0%; well down on the 52.5% recorded the previous week. During the last 12 weeks, the weighted average capital city auction clearance rate has
averaged less than 48% on a weekly basis, highlighting the weak market conditions. In Melbourne, auction clearance rates fell to 51.6% last week from
55.1%the previous week. Sydney?s auction clearance rate also fell, down to 50.1% from 54.7% the previous week.
The number of new properties advertised for sale during the four weeks to 10 July 2011 was -7.1% lower than it was during the four weeks to 3 July 2011.
The decline in new listings was even greater across the combined capital cities, down -10.2% from last week's results. Nationally, new listings are now -
7.1% lower than they were 12 months ago and in the capital cities they are -10.2% lower than last year. The total number of listings nationally fell by -
1.6% last week however, they remain at elevated levels, 24.7% higher than at the same time last year. In the capital cities, total listings fell by -1.8% last
week but they are 20.8% higher than at the same time last year.
New rental listings fell by -15.4% over the four weeks to July 10 2011 compared to the four weeks to July 3 2011. New rental listings are now -10.1%
lower than at the same time last year. In the capital cities, new listings fell by -15.0% over the week and are -12.0% lower than at the same time last year.
Total rental listings also eased last week, down by -6.1% nationally and by -5.8% in the combined capital cities. Total rental listings are currently 1.0%
higher than they were at the same time last year nationally and -1.1%lower across the combined capital cities.

Total Rental Listings: 87,855
Total Houses for sale: 275,000


http://www.financialpublications.com.au/DownloadDocument.ashx?DocumentID=278