Housing finance figures rise in December 2011

The Australian Bureau of Statistics recently released its Housing Finance data for December 2011.  The data showed that the total value of dwelling commitments, excluding alterations and additions, rose 3.8 per cent in seasonally adjusted terms in December 2011 as compared with November 2011. 

It is possible that the improvement seen in the figures could point to a strengthening of the Australian residential real estate market off the back of recent rate cuts by the Reserve Bank of Australia. 

Upon the release of the data, Century 21 Chairman and Owner, Charles Tarbey, said that the figures were pleasing and may reflect the fact that buyers were encouraged by and responsive to the Reserve Bank’s decision to cut interest rates in both November and December last year. 

The data shows that on a national basis, the seasonally adjusted number of owner occupied housing commitments rose by 2.3 per cent over the month. 

In addition, the seasonally adjusted number of mortgages that were refinanced by owner occupiers rose by 2.3 per cent. 

“An increase in owner occupier commitments could signal that home buyers across the country are gradually starting to return to the property market,” Charles also noted of the figures. 

He went on to say that whether the trend continues would depend on how prospective buyers reacted to the Reserve Bank’s decision to keep rates on hold in February and the impact this move will have on levels of buyer confidence. 

Charles also mentioned that the refinancing figures too were positive, as they may indicate that current mortgage holders are proactively taking advantage of rate cuts and seeking out the best lenders.  He concluded by saying that such willingness to switch lenders is essential for increasing competition between the major banks and other lenders, ultimately ensuring that the lowest possible rates are being passed on to consumers. 

For more information about property purchase opportunities in your local area, please feel free to drop into your nearest CENTURY 21 real estate office for expert, clear advice. 

Posted by Charles Tarbey on 27/02/2012 at 1:02 PM | Categories:

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