Housing finance commitments increase nationwide during October

By the resi financial blog team, 11 December 2013

Australian bureau of statistics on housing affordability

Housing finance commitments increased during October across the nation, which could be great news for anyone considering taking out a home loan sometime in the near future.

The latest data from the Australian Bureau of Statistics (ABS) has illustrated a 1 per cent increase in the number of owner occupier commitments from September to October.

Furthermore, there was a 2.7 per cent increase in the number of investor finance commitments throughout Australia - highlighting the undercurrent of growth occurring in the real estate market across the country.

A number of industry bodies applauded the growth, with Master Builders Australia Chief Economist Peter Jones stating that the 1 per cent increase for owner occupier commitments confirmed that the growth in September was not just an "aberration".

He went on to highlight that owner occupier approvals were currently 12.4 per cent higher than the same time last year, and that the number of investor dwelling commitments had grown by 30 per cent during the year.

Peter Bushby, president at the Real Estate Institute of Australia (REIA), highlighted that first home buyers were still being underrepresented in the statistics, only increasing 0.1 percentage point over the low 12.5 per cent recorded in September.

"The proportion is one of the lowest since data began to be collected in July 1991 and is far lower than the long-run average proportion of 19.9 per cent, despite eight interest rate cuts since November 2011," Mr Bushby said in a December 10 statement.

He went on to say first home buyers needed to be stimulated by further intervention from the government in order to provide the opportunity for these individuals to secure their own properties.

This growth could be perfect for those interested in property investment in the near future, with capital cities already preparing infrastructure development to cope with the projected population explosion.

Categories: Home Loans, Property Investment