Housing market conditions across Australia have tightened with the latest figures showing further contraction in lending activity.
On a seasonally adjusted basis, ABS data indicates that the dollar value of loans which were approved for owner occupied housing during November contracted by 0.2 percent to come in at $519.795 billion.
The actual number of new loans issued for owner-occupied housing contracted by 0.9 percent to 51,967.
Compared with the same month one year earlier in 2017, the number and value of loans issued to owner occupiers in November was down by 7.9 percent and 7.3 percent respectively.
This is impacting the market for new home building.
Compared with the same month in 2017, the number of loans made either the construction of a new home or the purchase of a newly constructed home have fallen by 8.9 percent and 18.7 percent respectively.
Around Australia, the market for home lending has been impacted as banks exercise greater caution in lending practices in light of the royal commission.
The lower levels of lending may also signal a softening in demand for housing.