New home building recovery forecast around the country
Real estate market conditions are improving in Australia, with a new report indicating a surge in new home building across the country.
The Housing Industry Association's (HIA) National Outlook for Spring points to a mild recovery in residential construction in Queensland, Northern Territory, South Australia, Western Australia and New South Wales.
HIA chief economist Harley Dale said figures didn't show a major increase in new home building, but the figures were encouraging, showing renewed confidence in the residential property sector.
"There is some evidence of an impending recovery, but it remains far from compelling," Mr Dale said.
"Nevertheless, we are still forecasting a recovery in housing starts in 2012/12 with a mild increase of 1.8 per cent driven by New South Wales and Western Australia."
Mr Dale attributed the positive outlook to low interest rates, the possibility of further cuts and increased first home buyer incentives in a number of areas of the country.
The forecast is likely to reinvigorate confidence in the real estate market, with more Australians seeing now as the perfect time to take advantage of favourable economic conditions.
Housing starts are forecast to increase an additional four per cent in 2013/2014 to 147,060, while renovations investment is expected to increase 1.6 per cent during the 2012 to 2013 year.