Finance commitments for new houses rise

By the resi financial blog team, 10 September 2013

Finance for new houses up in May 2013

New information from the Australian Bureau of Statistics (ABS) has shown that the number of people that obtained housing finance for the purchase and construction of new homes has increased over May.

According to the ABS statistics, the number of loans for the construction and purchase of new homes increased by 0.6 per cent in seasonally adjusted terms across the country.

"Looking at new home lending across the states and territories, it is encouraging to see that these improvements have been reasonably broad-based. In most jurisdictions, the number of loans over the three months to May 2013 is substantially higher than 12 months ago," said Housing Industry Association (HIA) economist Diwa Hopkins in a July 12 statement.

South Australia experienced a notable improvement in lending for new homes, where the figure rose by 0.6 per cent.

Commenting on the results, HIA South Australia executive director Robert Harding stated that the improvement may have been due to the current low cash rate coupled with the home buyer incentive put in place by the state government.

"The number of loans for the construction and purchase of new dwellings posted a very strong result in May, indeed the best monthly result since 2012," said Mr Harding.

"The fourth consecutive monthly improvement in lending for new homes suggests the combination of lower interest rates and the Housing Construction Grant are enticing buyers back into the market."

Over the month of May, there were a total of 680 loans taken out by first home buyers, which is the highest number for any month since 2009.

For expert help with finding the best home loan for first home buyers, talk to one of the loan specialists at resi today.

Categories: Home Loans