- The document is a media release from the Real Estate Institute of Australia discussing Australian Bureau of Statistics housing finance figures for May 2011 which showed a marginal 0.1% increase in finance commitments following six months of consecutive decreases. - Increases were seen for construction of new dwellings while falls were recorded for purchases of established and new dwellings. The proportion of first home buyers also decreased from the previous month and remains below long-term averages. - The REIA Acting President expressed concern about the low and continuing levels of finance commitments to first home buyers who have been hardest hit by interest rate rises, and this group will face additional challenges due to the impact of the carbon tax on

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The Real Estate Institute of Australia
16 Thesiger Court Deakin ACT 2600
02 6282 4277 I www.reia.com.au
Media Release
Monday 11 July 2011
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Housing finance stagnates
Australian Bureau of Statistics (ABS) Housing Finance figures for May 2011 show, in trend terms,
that following six months of consecutive decreases, the number of finance commitments increased
by a marginal 0.1 per cent.
“In trend terms, modest increases were recorded in Western Australia and Victoria, with all other
states and territories showing decreases, ranging from 0.3 per cent in the Australian Capital
Territory to 0.8 per cent in the Northern Territory,” said Real Estate Institute of Australia (REIA)
Acting President, Ms Pamela Bennett.
Increases were evident for the construction of new dwellings (0.2 per cent in trend terms) while
falls were recorded for the purchase of established dwellings (down 0.4 per cent in trend terms)
and the purchase of new dwellings (down 0.8 per cent in trend terms),” said Ms Bennett.
The number of first home buyers, as a percentage of total owner occupied housing commitments,
decreased from 15.8 per cent in April to 15.4 per cent in May. This proportion is well below the
long-run average of 20.1 per cent and dramatically down from the 28.5 per cent level of April 2009.
In trend terms, the value of investment housing commitments showed a decrease of 0.4 per cent
and is the thirteenth month of consecutive falls.
“The continuing low levels of finance commitments to first home buyers is a concern. First home
buyers have been hit the hardest by the effect of interest rate rises,” she continued.
“And with the impact on building costs of the just announced carbon tax expected to fall
disproportionately on first home buyers, as the REIA continues to highlight, this group of buyers is
edging closer towards endangered species status,” concluded Ms Bennett.
The Real Estate Institute of Australia (REIA) is the national professional association for real
estate agents in Australia. For further information or interview opportunities, please
contact:
Pamela Bennett REIA Acting President 0412 212 313
Amanda Lynch REIA CEO 0419 123 862
Rhiannon McClelland REIA Manager Communications 0421 422 919