Non-bank market share slides again

Figures released by the ABS yesterday revealed the number of owner-occupied dwellings financed by non-banks decreased by 13.5 per cent in October compared to September this year.

The fall, according to the ABS, was driven by a 20.3 per cent decrease in financing by wholesale lenders.

The banks however were able to increase the number of owner-occupied dwellings they financed over the same period by 2.3 per cent.

Moving to other market indicators, the total value of owner-occupied housing commitments (seasonally adjusted) rose by 1.1 per cent (up $169 million) from September to October, driven by a rise in purchases of established dwellings as well as the construction of dwellings.

Investment housing commitments also increased by 2.9 per cent (up $195 million) over the September to October period, a result of an increase in the construction of dwellings for rent or resale.

First home buyers continued to increase their share of the owner-occupied market, with the number of first home buyer commitments as a percentage of total owner-occupied housing finance commitments climbing from 17.7 per cent in September to 18.7 per cent in October.

Uncertainty over continued rate movements was also evident, with fixed-rate loan commitments, as a percentage of total owner-occupied housing finance commitments, rising from 19.2 per cent in September to 21.0 per cent in October.

October 2007 at a glance

(Changes from September 2007; seasonally adjusted)

Value of owner-occupied dwellings – increased by 1.1 per cent

Value of investment housing commitments – increased by 2.9 per cent

Number of owner-occupied dwellings financed – decreased by 0.7 per cent

First home buyer finance commitments – increased by 1.1 per cent

Fixed-rate loan commitments – increased by 1.8 per cent

Finance commitments for the construction of owner-occupied dwellings – increased by 2.6 per cent

Finance commitments for the purchase of new dwellings for owner-occupation – decreased by 9.4 per cent

Finance commitments for the purchase of established dwellings for owner-occupation – decreased by 0.6 per cent

Owner occupier housing refinances – decreased by 3.9 per cent

Owner occupied dwellings financed by banks – increased 2.3 per cent

Owner occupied dwellings financed by non-banks – decreased by 13.5 per cent

Outstanding housing loans by ADI’s – increased by 1.6 per cent

Non-bank market share slides again

Staff Reporter

Last Updated: 09 January 2008 Published: 11 December 2007

Written by Staff Reporter

Last Updated: 09 January 2008

Published: 11 December 2007