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ISCOVER
Staff Reporter
Prolonged interest rate stability is starting to encourage home buyers back to the market, with new data showing an uptick in housing finance figures.
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Following a half year of consecutive decreases, data from the Australian Bureau of Statistics found the number of finance commitments increased 1.7 per cent in July.
“In trend terms, increases were recorded in all states and territories. Queensland recorded the largest increase, up 2 per cent,” Real Estate Institute of Australia (REIA) acting president Pamela Bennett said.
“Increases were evident for the construction of new dwellings (up 1.3 per cent), the purchase of established dwellings (up 1.7 per cent) and the purchase of new dwellings (up 2.3 per cent).
“The upturn in lending commitments reflects stability in interest rates and the housing market as well as increased competition among lenders.”
The number of first home buyers, as a percentage of total owner occupied housing commitments remained unchanged at 15.2 per cent. This proportion is well below the long-run average of 20.1 per cent and dramatically down from the 28.5 per cent level of April 2009.
After fourteen consecutive months of falls, the value of investment housing commitments in July saw a modest increase of 0.5 per cent.
