New home financing increases across the nation
New home lending has remained strong in the face of rising prices for homes across the nation, which could be great news for anyone considering buying land and building their own residential property in the near future.
The latest data released by the Australian Bureau of Statistics (ABS) found the number of owner occupier loans for new dwelling construction increased during December by 0.4 per cent. Furthermore, the final quarter of last year saw the total number of new home lending for owner occupiers rise by 2.1 per cent, coming to rest 14.6 per cent higher than the same time a year before.
Housing Industry Association (HIA) Senior Economist Shane Garrett said this was a great result for the national real estate market.
"Today's data cap off a strong year for new home lending and signal that activity on the ground will be strong during the early months of 2014," said Mr Garrett in a February 11 statement.
"During December, the share of the owner occupier market accounted for by First Home Buyers reached its highest in four months and this is something to be welcomed."
Furthermore, this ABS data also illustrates an increase in the value of capital city dwellings. Overall, there was a 3.4 per cent increase during the final quarter of 2013, which is 9.3 per cent higher than the same level 12 months earlier.
"Steady and sustainable price growth reinforces confidence in the market and healthy lending activity must be seen in this context," said Mr Garrett.
He went on to state that maintaining these steady levels of growth would require more being done around the issues of planning, land supply and infrastructure funding. With a number of these projects being undertaken across multiple capital cities in Australia, these issues are already beginning to be addressed.
However, improving the "long term housing affordability" across the nation will need to become the focus of both state and federal governments in order for the country to achieve full economic potential over the next few years and decades.
In fact, the Real Estate Institute of Australia (REIA) recently provided the government with 10 suggestions for the development of the real estate industry ahead of the 2014/15 budget announcement.
These range from allowing first home buyers to use their superannuation to purchase property to annual revisions of First Home Owner Grants in order to keep them aligned with the current market situations across Australia.