Demand for housing finance increased during January
Housing finance has continued to recover during 2014, with lending for new homes in January reaching its highest level in four years. This could be great news for anyone interested in buying a house or looking into the construction of their own residential property in the near future.
Diwa Hopkins, economist for the Housing Industry Association, said the number of owner occupier loans for construction for new dwellings increased 5.8 per cent over January 2014, while the amount of loans for the purchase of new dwellings eased 1 per cent.
However, due to the strong nature of the market over the three months leading up to January, this slight decline shouldn't be cause for alarm.
"The overall January result is a promising signal that recently improved conditions in the residential construction sector will continue into 2014. There are also some important signs emerging from the state by state breakdown of new home lending," said Ms Diwa in a March 12 statement.
"We're expecting the recovery in residential construction to spread to and gather momentum in other key states including Queensland and South Australia while the pace of improvement eases in New South Wales and Western Australia."
This could present a fantastic opportunity for the development of local communities across the nation. Coupled with the increasing rates of housing approval being seen across the nation, the current real estate landscape in Australia is prime for people to pursue their real estate goals.
Furthermore, Master Builders Australia Chief Executive Officer Wilhelm Harnisch said the strengthening market displays a great housing recovery occurring across the nation, which could be great for continued development ahead of a population influx.
"The recovery is largely underpinned by low interest rates and it is important that the Reserve Bank maintain current rate settings if it is not to be killed off," said Mr Harnisch in a March 12 statement.
"It is equally important that the May budget sets out a clear strategy to underpin business and consumer confidence to maintain the momentum of the housing recovery."
For anyone sitting on the fence about committing to real estate, now could be a great time to begin considering your real estate options and investigating the market. With this growth spreading to Queensland and South Australia in the near future, buying your dream residential property could be a very real prospect in the coming months.