Housing finance dips in August as investors continue to outpace owner-occupiers

The value of home loans issued in August fell as growth in investor loans was offset by a dip in owner-occupier credit.

 

The value of home loans issued in Australia weakened 1 per cent in August, with a 1.6 per cent skid in owner-occupied housing finance offsetting a 0.1 per cent rise in investment housing loans, according to official ABS numbers.

Investment finance has now outshone owner-occupied finance for four straight months, belying talk of a tightening of loan condition to investors by the banks.

In three of those months owner-occupied financing has weakened at the same time financing for investors has risen.

The number of home loans issued fell 3 per cent on the month, the figures also showed, worse than the 1.5 per cent fall tipped by analysts.

The number of owner-occupied home loans offered softened to a seasonally adjusted figure of 53,109.

The negative reading follows a sharp 4.2 per cent drop in July and the figures overall marry with recent reports of limited stock for sale, which is seen as one reason for rising prices.

The Australian dollar slid US0.1c on the data and was trading at US75.87c at 12pm (AEDT).