Australia: Housing finance approvals hold steady - Westpac

Matthew Hassan, Research Analyst at Westpac, explains that Australia’s housing finance approvals were essentially steady in Feb, with the number of owner occupier approvals dipping 0.2%.

Key Quotes

“That was a touch better than market expectations of a 0.4% decline – industry estimate had been softer still. Approvals are down 0.8%yr.”

“The value of investor housing finance posted a 0.5% gain, extending on an upwardly revised 1.4% gain in Jan. Despite this, the value of investor loans is still down nearly 6% on a year ago while owner occupier activity it up only slightly.”

“Overall, the steady picture around finance approvals, the recent stabilisation in auction clearance rates and somewhat improved buyer sentiment suggests markets are stabilising after the slowdown in 2017 although prices continue to show modest slippage. That said, the finance data still provides no real clues about where momentum may be heading next.”