Demand for housing loans drops: ABS

Demand for housing loans fell in January, according to new Australian Bureau of Statistics figures.

Total value of finance for all dwellings fell 2.3%, with owner-occupier flat at just 0.1% up.

The total value of finance for investment properties dropped to a seasonally-adjusted 7.1%.

“The number of commitments for owner-occupied housing finance fell 1.2%,” the ABS says.

The statistics follow a rise in housing finance in the previous month, according to HSBC Global Research chief economist Paul Bloxham.

“The general trend is up, and we expect a modest improvement in the housing market this year,” Bloxham says.

The previous month the total value of all dwelling finance commitments rose 0.8%. Investment housing commitments rose 0.9% and owner-occupied housing commitments rose 0.7%.

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