Interest Rate Cuts Starting to Support Home Building

Published:

“We could be seeing the early signs of the positive impacts from recent policy stimulus with lending for both new and existing homes up for the month and the quarter,” stated HIA Economist, Tom Devitt.
 
The ABS released the Lending to Households and Businesses data for August 2019 today. The publication presents statistics on housing finance commitments including for the purchase or construction of new dwellings.
 
“The decline in lending, which has been evident since late 2017, has started to reverse since the RBA started to cut interest rates in June,” added Mr Devitt.
 
“Lending to households building and purchasing new homes expanded by 1.1 per cent in the month of August and 0.4 per cent for the quarter. Lending for establishing dwellings also climbed by 0.6 per cent in the month and 4.4 per cent for the quarter.
 
“First home buyers are continuing to take advantage of the improvement in affordability with lending to this group expanding by 5.2 per cent in the month and 7.6 per cent in the quarter. This is the highest number of first home buyer loans since November 2017.
 
“First home buyers now account for 30.1 per cent of the total market, the highest share since the start of 2012, so continued growth in this segment is important for the broader housing market.
 
“The first two RBA interest rate cuts, along with income tax cuts and APRA’s loosening of lending restrictions appear to have started supporting the housing market with market confidence slowly returning.
 
“Given the lag between loan applications and final approval, it is likely that the full effects of recent stimulus is yet to play out in the data and will provide further support to the market as the year progresses,” concluded Mr Devitt.

 
Australian Government Business Business & Economy Political Property & Real Estate
Social:   

Housing Industry Association Limited :
Level 1, 84 Wises Road, Maroochydore
07 5451 9300
1902 973 555
Housing Industry Association Limited
Showing 5 recent articles for this business
Interest Rate Cuts Starting to Support Home Building 10 October 2019 | “We could be seeing the early signs of the positive impacts from recent policy stimulus with lending for both new and existing homes up for the month and the quarter,” stated HIA Economist, Tom Devitt. More information...
Surprise Increase in Building Starts 09 October 2019 | Surprise Increase in Building Starts “The number of new homes commencing construction in the June quarter increased by 1.1 per cent, the first increase since December 2017,” said Tim Reardon, HIA Chief Econ... More information...
First Home Buyers Are Not Winners in Housing Tax Policy 03 May 2019 | The Federal Opposition contradicted its own housing policy this week when it said that proposed changes to negative gearing and capital gains tax won’t have an appreciable impact on the price of housing, acco... More information...
Leave Capital Gains Tax and Negative Gearing Alone 04 April 2019 | A report released by the Housing Industry Association today shows that the majority of Australian voters do not understand Labor’s proposed changes to capital gains tax and negative gearing. It also shows that... More information...
New Home Sales Trend Downwards 01 April 2019 | “New home sales remained subdued in February, with just a 1.0 per cent increase across Australia, against a downwards trend that has been evident since the end of 2017,” stated HIA’s Chief Economist, Tim... More information...


comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service