The Australian Bureau of Statistics has released a report this month highlighting the continued decline in the new home building market. We have all heard that Australians are not spending on anything other than the necessities.

The total number of loan commitments (seasonally adjusted) for owner occupied housing finance fell 2.5% in February.

Between Januaryand February, the number of owner-occupied housing loans (seasonally adjusted) fell in Queensland by 1.1 per cent, New South Wales by 9.4 per cent, the Australian Capital Territory 1.7 per cent, Tasmania 5.3 per cent, and the Northern Territory 0.4 per cent. Rises were recorded in South Australia up by 2.0 per cent, Western Australia up 0.8 per cent and Victoria 0.3 per cent.

Whilst loans to buy established new homes dropped by 10.4 per cent in February, loans for construction of new houses increased by 3.1 per cent, meaning that total loans for new dwellings eased by 0.6 per cent. Loans for existing dwellings net of refinancing fell by 4.2 per cent.

In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.3 per cent.