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The number of new home loans fell slightly in October, the Housing Industry Association says.
During the month, new home loans were down 0.4 per cent compared with the previous month and 2.4 per cent lower than a year earlier.
The HIA reported a 0.8 per cent decline in the number of loans for new home construction and a 0.3 per cent increase in the volume of loans for the purchase of a new home in October.
HIA senior economist Shane Garrett said with a record pipeline of higher density dwellings reaching settlement, home purchase lending is likely to stay at an elevated level.
“HIA expects that an orderly reduction in new dwelling commencements will become evident during 2017, particularly on the apartment side of the market,” Mr Garrett said.
“Accordingly, the volume of new home loans is only likely to start easing back towards the end of next year.”
Compared with 12 months ago, the number of loans for construction and purchase of new homes in October 2016 rose most strongly in Tasmania (+18.2 per cent), followed by the ACT (+12.7 per cent).
There were also increases in the volume of loans in Queensland (+11.2 per cent) and South Australia (+2.1 per cent).
The largest reduction in loans occurred in Western Australia (-24.4 per cent), followed by the Northern Territory (-17.6 per cent).
There were also falls in NSW (-9.1 per cent) and Victoria (-3.8 per cent).
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