Property sector to improve in 2013
Despite a drop in home lending last November, experts believe the residential property market will improve in 2013.
The latest data from the Australian Bureau of Statistics (ABS) revealed the total value of lending for the construction and purchase of new homes around the country plunged 4.8 per cent in November.
But according to Housing Industry Association (HIA) economist Geordan Murray, the outlook is not all bad, with the figures coming off the back of more positive conditions.
"We would obviously like to have seen the housing finance record a positive move in November, particularly following the cut to interest rates in October, however, we don’t consider the overall picture to be negative," Mr Murray explained.
"The number of loans for construction and the purchase of new homes are well above the levels we were seeing this time a year ago," he added.
Mr Murray went on to say that overall, the latter half of 2012 recorded encouraging lending activity - an indicator that the market will continue to improve this year.
The recent decline was driven by a 1.8 per cent fall in loans for construction and a 10.3 per cent fall in lending for the purchase of new homes.
The economist also said that a number of major changes to government incentives for first-time-buyers last year are yet to be seen.