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August housing finance figures



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Media Release Geoff Prosser M.P. FEDERAL MEMBER FOR FORREST

Shadow Minister for Small Business, Housing and Customs.

5S

14 -August 1992

AUGUST HOUSING FINANCE FIGURES

Housing finance figures for owner-occupied housing for August do not the whole story about building activity.

According to Bureau of Statistics figures released today, finance commitments for owner occupied housing rose by 8.3%.

However, given th a t housing finance fell by over 5% in July, some of the increase in August was due to demand which was 'held over' from July until after the release of the August Budget and its forecasts on interest

rates.

The two months' figures show just how susceptible current increases in housing activity are to changes in interest rates and indicate the volatility of the market.

The increase in housing finance in August must also be discounted to take account of the increasing percentage of commitments which are directed toward re-financing existing loans. This month 13% of total finance commitments were used to re-finance loans, up from 9% six months ago.

As such, the full impact of this month's increase will not flow on to the housing sector as increased activity.

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