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ISCOVER
Staff Reporter
New data from the Australian Bureau of Statistics (ABS) shows home loan demand is finally on the rise.
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According to the ABS, March had the highest monthly uptake of home loans since November 2009.
The data revealed that the 48,071 loans taken out was the highest total in 40 months and each state in the country is now showing month-on-month growth for the first time.
“Nationally, the number of loans taken out in March 2013 was up five per cent from February, and New South Wales showed the highest growth at eight per cent,” Loan Market spokesperson Paul Smith said.
“These statistics are encouraging in that each state-based housing market is heading in the right direction.
“Lower interest rates and the confidence returning to the property market are two of the biggest factors in these positive results.”
Mr Smith said that the Reserve Bank's latest reduction in the cash rate earlier this month should give a big boost to what is still a fragile sector.
“To have the strongest month of housing finance in 40 months is definitely a sign that the market is recovering from the slowdowns seen in the past year. With interest rates being at historic lows, we’re likely to see more homeowners and buyers continue strong activity,” he said.
The Northern Territory was the only area of the country showing negative growth, he added, with four fewer loans in March than in February.
