Housing recovery unaffected by November drop in approvals

By the resi financial blog team, 10 January 2014

Decline in housing approvals November 2013

If you're looking into taking out a construction loan in the near future, now could be the perfect time to get underway.

The latest data from the Housing Industry Association (HIA) has illustrated that, while there was a slight drop in approvals during November 2013, the housing recovery is still increasing in strength across the nation.

This could be great news for anyone sitting on the fence about committing to a construction loan and building their dream home this year.

HIA Senior Economist Shane Garrett said the total number of approvals during November dropped by 1.5 per cent from October, but there was no cause for alarm.

"Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend," said Mr Garrett in a January 9 statement.

"During November, the number of detached house approvals increased by 5.7 per cent with multi-unit approvals falling by 8.8 per cent."

Approvals for detached homes are at their highest levels since mid-2010, while the total number of dwelling approvals granted over the last 12 months has almost totalled 174,000. Mr Garrett said that this is a level consistent with the growth needed for Australia's future housing needs.

"Strong levels of home building will be very supportive to wider economic growth, something particularly pertinent at this time. It is vital that strong levels of home building continue so as to ensure that housing needs are met across all regions," said Mr Garrett.

The strongest growth across the nation was seen in South Australia (23.2 per cent), New South Wales (14.5 per cent) and Queensland (8.3 per cent), which could highlight great areas to consider off the plan investment in.

Categories: Home Loans, Property Investment