Housing finance commitments grow during November 2013
Now could be the perfect time to consider buying a house in Australia, as the number of financial commitments for property have increased during 2013 - reflecting the overall confidence and strength of the real estate market across the nation.
The Australian Bureau of Statistics (ABS) recently released data detailing the growth of financial commitments for housing during November 2013. The information indicated an uptake of residential property over the last year.
This trend was evident after the ABS recorded a 0.9 per cent increase in the total number of owner occupier loans committed to during November. Furthermore, the number of construction loans sought increased by 2.3 per cent, while loans for established dwellings increased by 1.2 per cent.
While there was a 4.3 per cent drop in the number of commitments for new dwellings, Master Builders Association Chief Economist Peter Jones said the increasing confidence offset this drop as more housing stock begins to enter the market.
"The 1.1 per cent increase in ABS November Housing Finance commitments seasonally adjusted, is the twelfth consecutive monthly rise and shows that low interest rates and increased affordability continue to drive increased demand for new dwellings," said Mr Jones in a January 13 statement.
Mr Jones went on to say that investors and upgraders were responsible for the bulk of the growth, as the number of first home buyers in the market lags. According to the ABS data, first home buyers accounted for only 12.3 per cent of those seeking housing finance during this period.
Housing Industry Association Senior Economist Shane Garrett said the values of loans for investors rose by 1.5 per cent during November, which is "consistent with the new mood of confidence in Australia’s housing market".
"Today's figures confirming the continued recovery for residential construction are not just a good news story for the industry but also for the wider Australian economy," said Mr Garrett in a January 13 statement.
"There are few sectors of the economy more labour-intense than dwelling construction. The strong expansion of the sector brings the potential for greater jobs market support at this time of economic transition."
With the number of housing approvals also increasing across the nation, now could be the perfect time to consider purchasing real estate. Whether you're a first home buyer or interested in property investment, the market conditions could be set to help you achieve your goals.