Lending rates for new homes increase during May
First home buyers could be in luck over the coming months, with the Australian Bureau of Statistics highlighting the increasing strength of new home lending rates across the nation over the last few months.
Now could be a brilliant time for these buyers to begin looking into the market alongside their respective state's First Home Owner Grant - with most of these only applying to new properties or construction projects across the nation.
Housing Industry Association Chief Economist Harley Dale said the number and value of home loans being secured for both construction projects and new dwelling purchases had experienced a growth during May, which could offer a number of opportunities for buyers interested in purchasing their first slice of residential property in the coming months.
For example, total construction loans increased of 0.9 per cent over the month of May and were up by 3.1 per cent over the three months beforehand in seasonally adjusted terms. Furthermore, loans for the purchase of new dwellings rose by 1.6 per cent during May - highlighting the ripe environment for buyers to begin investigating the financial options available to them.
"Construction loans, the principal component of new home lending, are at their highest level in over four years. New dwelling commencements are on track to hit their second highest level on record in 2014. It is also encouraging to see that lending for larger alterations and additions is moving higher since a low point reached in February," said Mr Dale in a July 11 statement.
"The total alts and adds market hit a decade low in 2013 and a turnaround this year would clearly be a desirable outcome. With low interest rates and the recurrence of capital gains, there is the opportunity for the alts and adds market to gather upward momentum."
Regardless of whether you're interested in purchasing a home or buying land to build your own, now could be the best time to make moves into the market. More specifically, Tasmania has seen the largest growth in loans for new housing, increasing by 13.8 per cent over the three months to May.
Following this, Western Australia (8 per cent), Queensland (7.6 per cent) and New South Wales (2.1 per cent) all experienced varying degrees of notable growth. These region's represent a wide range of different options, which could be great news for potential first time buyers in the coming months.