Housing Finance Data
The Australian Bureau of Statistics (ABS) released Housing Finance data for September 2012 showed that the total number of owner occupier housing finance commitments rose by 0.9% over the month.
This figure was comprised of a 0.2% increase in refinance commitments and a 1.2% increase in non-refinance commitments. Over the 12 months to September 2012, refinance commitments have fallen by -4.3% compared to a 10.3% increase in non-refinance commitments.
The number of finance commitments has been trending upwards for most of 2012, a further positive sign that housing market conditions are gradually improving.
Over the month there was a sharp rise in the total value of investment finance commitments. The value of owner occupier finance commitments rose 1.5% (1.7% ex-refinances) and investment finance commitments rose by 8.6%. Over the past 12 months, the total value of owner occupier finance commitments has risen by 4.4% (9.0% ex-refinances) and by 8.8% for investments commitments.
The number of housing finance commitments to first home buyers fell by -5.9% over the month however, they have risen by 3.7% over the past 12 months.
In September 2012, first home buyers accounted for 19.3% of all owner occupier finance commitments, up from 18.6% in August.
Westpac and the Melbourne Institute released the November 2012 results of their Consumer Confidence Survey this week. Over the month, the Consumer Sentiment Index rose to 104.3% which was the highest reading since April 2011 and the first time consumers were showing higher levels of optimism than pessimism since February 2012.
Each component of the Index rose over the month with respondents most optimistic about it being time to purchase a major household item (136.1) and family finances over the next year (100.2). All other components continued to show greater pessimism than optimism.
The ABS released their Wage Price Index data for the September 2012 quarter this week. The data showed fairly modest wage inflation, increasing by 0.7% over the quarter. On an annual basis, wages have risen by 3.7% over the year to September 2012.
.