The number of loans taken out by homeowners and investors to buy homes rose in May, according to figures released this week by the Australian Bureau of Statistics.
Loans for the purchase of new dwellings grew by 4.7 per cent in May; however, the number of loans for construction fell by 2.2 per cent. Overall, loans for new housing dropped by 0.2 per cent to be 20 per cent lower than six months ago.
Over the 3 months to May 2010 total number of housing loans dropped by 26.2 per cent compared to the same period in 2009. Loans for first home buyers were down by 56 per cent, while trade-up buyer loans fell by 10 per cent.
The Housing Industry Association (HIA) estimates that the underlying demand for housing in 2010 is currently 190,000 dwellings per year.
HIA Chief Executive - Association, Graham Wolfe, warned this week, however, that housing starts in 2010 are forecast to total only 165,940.
In seasonally adjusted terms, the total number of owner-occupier loans in May 2010 increased 2.3 per cent in New South Wales, 0.4 per cent in Victoria, 3.8 per cent in Queensland, 1.9 per cent in South Australia, 0.3 per cent in Tasmania, and 7.7 per cent in the Northern Territory.
Total owner-occupier loans fell by 3.8 per cent in Western Australia and by 2.4 per cent in the ACT.