Housing loans to investors fell in December but the sector is still showing solid growth in trend terms, say economists.
The number of home loan approvals for owner-occupiers softened in December, rising 0.4 per cent compared to a revised lift of 1.3 per cent in November and missing market expectations of a one per cent increase, data from the Australian Bureau of Statistics on Friday showed.
The value of loans to investors fell one per cent, while the value of loans approved for owner-occupied housing rose 1.3 per cent.
The value of total housing finance for December lifted 0.4 per cent to $33.4 billion, seasonally adjusted.
CommSec economist Kristina Clifton said although the value of loans to investors had fallen one per cent in December, the decline had followed three consecutive monthly increases.
"Loans to investors have risen over 21 per cent since April 2016, just before the RBA (Reserve Bank of Australia) delivered the first of the two 2016 interest rate cuts," she said in a research note.
JP Morgan economist Henry St John said the 0.4 per cent lift in the number of housing loans was driven by the purchase of new-built dwellings.
The ABS said the number of loans to first-home buyers fell by 7.1 per cent in December, and the average loan size for first-home buyers fell by $4,600 to $319,300.
The average loan for all owner-occupiers fell $800 to $375,800.
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