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The June data from the Australian Bureau of Statistics (ABS) has revealed an increase in housing finance, serving to reinforce the general sentiment that housing market conditions are improving.
New lending to households rose 1.3% in June 2019, seasonally adjusted, according to the latest ABS figures on new lending to households and businesses.
While relatively small, the June increase is notable as it followed a 1.6% fall in May 2019.
“Consistent with recent house price movements, the decline in new lending commitments for dwellings has slowed in recent months,” said ABS director of financial statistics, Ben Dorber.
“In June we saw rises in new lending commitments for both owner occupier and investor dwellings for the first time in over a year.”
“Investor lending, however, remains well down from its peak and the rise in June was relatively small, up 0.5%,” he added.
New South Wales charted the first rise in new lending commitments for investment dwellings since April 2018, up 2.4%.
Each of the states exhibited rises in new lending commitments for owner occupier dwellings, while the territories experienced decreases.
The number of loans to owner occupier first home buyers rose 2.1% in June, meaning that five of the six months starting 2019 have recorded increases.
Personal finance rose 4.9% in June from May, but is down 10.9% year on year.
The value of new lending commitments to businesses is up 8.2% since June 2018.
