New home lending falls down under

New home lending has fallen in Australia for the second month in a row.

New ABS housing finance figures show that the total number of new home loans declined again during June. The total number of new housing loans to owner occupiers fell by 0.5 per cent in seasonally-adjusted terms during June, and was 9.1 per cent lower than 12 months earlier. During June, the number of owner occupier loans for new home construction fell by 0.4 per cent. The volume of loans for new home purchase declined a little more sharply during the month (down 0.8 per cent).

"This is the second consecutive monthly decline in new home lending," notes HIA Senior Economist, Shane Garrett. "An adequate flow of housing finance is vital to ensure that the pipeline of new housing supply meets Australia’s long term needs. We’re concerned by the apparent tightening of home lending conditions in both the owner occupier and investor markets as a result of APRA intervention."