1. The Real Estate Institute of Australia
16 Thesiger Court Deakin ACT 2600
02 6282 4277 I www.reia.com.au
Media Release
Monday 16 May 2011
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Housing finance still on the decline
Australian Bureau of Statistics (ABS) Housing Finance figures for March 2011 show, in trend
terms, a continuing decline in the number of finance commitments for owner occupied homes. The
decrease was 2.0 per cent, following a decline in the two previous months of 2.0 per cent and 1.6
per cent.
“In trend terms, decreases were recorded in all states and territories,” said Real Estate Institute of
Australia (REIA) President, Mr David Airey.
“Decreases were evident for the purchase of established dwellings (1.9 per cent in trend terms),
the purchase of new dwellings (5.6 per cent in trend terms) and construction of dwellings (1.6 per
cent in trend terms),” said Mr Airey.
The number of first home buyers, as a percentage of total owner occupied housing commitments,
increased from 14.9 per cent in February to 16.0 per cent in March. Despite the increase, this is
well below the long-run national average of 20.1 per cent and considerably down from the 27.1 per
cent level just over a year ago.
In trend terms, the value of investment housing commitments showed a decrease of 1.3 per cent,
following a fall of 1.3 per cent in February.
“It is positive news that first home buyer numbers have increased (as a percentage of the market)
but there is still a long way to go to see a healthy number. The RBA should not see this as a sign
to increase interest rates next month,” concluded Mr Airey.
The Real Estate Institute of Australia (REIA) is the national professional association for the
real estate sector in Australia. For further information or interview opportunities, please
contact:
David Airey REIA President 0418 906 002
Amanda Lynch REIA CEO 0419 123 862
Rhiannon McClelland REIA Manager Communications 0421 422 919