Property Market Information: New properties rule the roost

By the resi financial blog team, 13 November 2014

Property Market Information: New properties rule the roost

This week the Australian Bureau of Statistics (ABS) released its figures for home lending in the September quarter. The results show a very positive movement in the property market, especially among newly constructed homes.

According to the figures reported, first time home buyers were more active in the market in September than they were in August, making up 12 per cent of total owner occupied housing finance commitments. This is up from 11.8 per cent in August.

Seasonally adjusted figures from ABS show the total of dwelling finance commitments excluding alterations and additions rose 2.3 per cent.

The number of finance arrangements organised for established homes fell 0.3 per cent, while home loans for the purchase of new dwellings increased by 1.2 per cent and construction loans rose 0.2 per cent.

Commenting on these figures Housing Industry Association Chief Economist Harley Dale noted that new home lending had hit a new cyclical high.

"Apart from the stimulus-fuelled period around the GFC, lending for new housing is at its highest in 20 years," said Dr Dale.

The improved lending statistics are not just focused in one corner of the market either, with all buyers taking advantage of the low interest rate environment.

"That is a healthy result in terms of the short term outlook for new home construction. The demand for new housing reflects activity from first home buyers, trade-up owner occupiers, and investors" commented Dr Dale.

It's a very reassuring time for the construction industry, and also for people wanting to upgrade their homes. Not only are there a lot of buyers out there taking advantage of low interest home loans, but there are also plenty of newly built homes to choose from.

If you are considering making the most of a low interest variable or fixed home loan, contact a resi loan specialist today.

Categories: Home Loans