Market/Finance News Blog: Home renovations on the rise nationwide

By the resi financial blog team, 24 December 2014

Market/Finance News Blog: Home renovations on the rise nationwide

A recent release from the Housing Industry Association (HIA) offers some insights into the developing renovation market being seen across the nation, which could be interested for anyone looking into taking out a home renovation loan of their own in the near future. 

The Renovations Roundup highlights the recovering renovation market, which suffered during the global financial crisis. Over the last few years, people were weary of beginning home renovations, with the possibility of losing money on them too great of a risk. HIA Senior Economist Shane Garrett said that both homeowners were reluctant to make renovation moves, resulting in a downturn of the market. 

However, as interest rates were reduced late last year and home loan affordability increased, the home renovation market began to move again. As renovator confidence began to move up to an optimistic level, the number of people undertaking these developments grew as well.

"Activity is benefiting from a prolonged period of very low interest rates and growth in home prices over the past eighteen months. Despite the risks presented by the slowing economy, we can expect renovations activity to expand over the medium term. Growth will be driven by the upturn in New South Wales and stronger conditions in Queensland," said Mr Garrett in a December 18 statement. 

"From now until 2018, renovations activity will expand by about 10 per cent. This will take the value of the renovations market to $31.25 billion." 

Furthermore, with the HIA highlighting population growth figures during 2013/14 year across New South Wales (1.5 per cent), Victoria (1.9 per cent) and Western Australia (2.2 per cent), the potential for growing housing demand is huge.

Now could be a great time to consider renovating your home. If you're interested in getting things underway, get in touch with a resi loan specialist today and start looking into the finance options available to you. 

Categories: Home Loans, Property Investment