1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar

Property News

Home loan approvals are at year high

August 09, 2012

The latest results from the Australian Bureau of Statistics has revealed renewed confidence in the Australian residential property market, with home lending rising to a record level this year.

The number of housing finance approvals increased a seasonally adjusted 1.3 per cent in the month from June to May - indicating a restored interest among first time buyers and property investors.

Home loans in June equated to $13.8 billion, with loans to first time property buyers rising by 4.3 per cent.

The latest figures come after this week's decision from the Reserve Bank to hold the official cash rate steady at 3.5 per cent.

Citing economic uncertainty stemming from the European debt crisis, economists have picked there is likely to be a further interest rate cut this year.

CommSec economist Savanth Sebastian said in a News Limited report the "encouraging, albeit modest, improvement in the nation's housing sector were largely attributed to the central bank's latest interest rate cut - encouraging more people to climb the property ladder.

Finance approvals to build new houses rose by 4.9 per cent during June, with the number of mortgage approvals to purchase newly built dwellings increasing by 9.7 per cent in the same period.

Western Australia and Queensland both saw a fall in new loan commitments - with the former revealing a drop by 1.2 per cent and the latter down by 1.4 per cent.

Related Articles

Are units the future homes of Australia?

The current low interest rates have fueled Australia's hot property market, particularly in ...
read more

How affordable are Australian homes?

When it comes to buying a house, affordability is one of the most important aspects for any buyer. ...
read more

Residential growth refusing to slow

New details in residential housing growth mean the economy's strength will continue in the ...
read more

Latest Articles

How is Australian investment faring?

Looking at the investment property market, it appears that the industry is thriving. The Australian ...
read more

Council calls for property reform

Buying a property comes with a wide range of fees and taxes, depending on where you buy and the ...
read more

Home values just keep on rising

Despite an alleged peak in home building having passed and a cooling in growth, there is still a ...
read more