HIA: Home loan commitments for residential properties increase in July
The latest home lending figures from the Australian Bureau of Statistics have indicated an increasing number of financial commitments for home loans in previous months.
This could be a fantastic opportunity for anyone interested in buying a home to begin looking into the market for their dream property, as confidence begins to return to the market.
According to Geordan Murray, an economist for the Housing Industry Association (HIA), there were 8,396 loans to owner occupiers for the purchase or construction of a new home during the month of July.
This growth signals the third consecutive month of increased home loan activity and the strongest monthly increase since early 2010. Mr Murray went on to state that this is indicative of the steady upward trend that has been occurring since early 2011, after the market bottomed out.
These results were seen across the country. The number of owner occupied loans for construction and purchasing of new homes increased by 0.7 per cent over the previous month, which is also 15.5 per cent higher than July last year.
"The aggregate value of lending for housing increased by 4.5 per cent in the July 2013 quarter. There has been strengthening demand from both owner occupiers and investors, which in itself is encouraging, but growth has been driven primarily by lending to those purchasing existing homes," said Mr Murray.
With the cash rate currently sitting at a historically low level and interest rates settling in to reflect this, now could be a great time to consider pursuing your real estate dreams, whether they involve finding lucrative property investment opportunities or purchasing a home as a first home buyer.
Meanwhile, Victoria also experienced fantastic growth in home loans for existing properties, rather than newly constructed buildings, during July.
While the lending for construction or purchase of new homes increased by 7.6 per cent across the month, loans for existing property increased by a huge 25.5 per cent across the month.
This increase was also experienced across the most recent quarter, with existing property lending rates increasing by 13.5 per cent over the last three months.
According to the HIA's Executive Director Gil King, Victoria's housing industry is being secured by the growth of lending for existing properties more than new home building.
"It is important we see evidence emerge over the remainder of 2013 that new home lending is recovering in a sustainable manner," said Mr King in a September 9 statement.