Lending commitments and values edged up again in November as the market recovery continued.
The value of new owner-occupier loan commitments for homes rose 10.1 per cent through the year to November 2023, while the number of these commitments rose 7.3 per cent, according to fresh data from the Australian Bureau of Statistics (ABS).
The value of the loans rose by $83 million to $17.9 billion for the month.
ABS head of finance statistics Mish Tan said the value and number of new owner-occupier home loan commitments November rose 0.1 per cent and 1 per cent on the previous month.
The value of total new investor loan commitments rose 1.9 per cent in November and was 18 per cent higher compared to a year ago.
“The growth in owner-occupier and investor lending seen through 2023 was driven by the three states with the largest populations,” Dr Tan said.
The number of new owner-occupier first home buyer loan commitments rose 3.5 per cent in November and was 20.3 per cent higher compared to a year ago.
The value of these commitments rose 2.8 per cent in the month and was 25.8 per cent higher for the year.
The number of refinanced owner-occupier loan commitments between lenders rose 4.2 per cent to 21,482 in the month. The record high of 28,132 was in July 2023.
The November level was close to that of March 2022, just before the Reserve Bank began its series of cash rate rises, 13 in all.
The value of new loan commitments for total fixed-term personal finance fell 5.6 per cent to $2.4 billion.
Oxford Economics Australia senior economist Maree Kilroy said that following the rebound over 2023, they expected 2024 would be a softer year with home prices increasing a more muted 2.7 per cent nationally.
“Units are expected to outpace houses as affordability pressures, migration patterns and weak apartment completion volumes intensify competition in the city apartment markets,” she said.
“While Sydney and Melbourne are expected to record relatively softer growth, Perth is well-equipped to lead the pack as the city develops a more sizeable dwelling stock deficiency.”
New owner-occupier home commitments, value, Nov 2023
This was driven by a fall of 5.4 per cent in lending for the purchase of road vehicles.
Meanwhile, household spending was 3.1 per cent higher than a year ago, according to the ABS.
ABS head of business statistics Robert Ewing said the rise in spending had been driven by spending on essential goods and services.
“Non-discretionary spending rose 5.8 per cent compared to November last year, as spending on transport and health increased by 8.3 per cent and 7.8 per cent respectively.
“Black Friday sales boosted discretionary spending in November, similar to the previous year, so that households spent 0.3 per cent more than November, 2022 on discretionary goods and services.
“Spending on furnishings and household equipment was 1.7 per cent higher than the same time last year, while clothing and footwear fell 0.1 per cent.”
