The October figures for home loans released by the ABS today showed a further decline in the number of new loan commitments by 0.3% with a drop in owner occupied housing of -0.5% but an increase in investment housing of 1.5%.
The number of owner occupied housing commitments excluding refinancing (trend) fell 0.8% in October 2016, following a fall of 0.9% in September 2016, however the value of these loans increased by 0.3%. Similar falls were also seen in housing commitments for construction by owner occupiers.
Total lending fell in NSW (-2.3 per cent), SA (-1.9 per cent ), WA (-0.2 per cent) and NT (-6.3 per cent). It was flat in Victoria but rose 1.7 per cent in Queensland, 3 per cent in Tasmania and 6.1 per cent in ACT.
The portion of First Home buyers in the market increased to represent 13.7% of all dwellings financed, up from 13.1% last month and 12.9% last October.
The value of all loans issued over the past 12 months to Owner Occupiers and Investors (excluding Owner Occupier re-financing) compared to the previous 12 months is down -3.9%.
Investor loans written in the last 12 months are actually down -12.7% on loans written in the previous 12 months.
Overall, these figures show that APRA's attempts to slow credit growth continue to have an influence on the overall market.