Stronger showing for new home lending in October

The most recent housing finance data released by the ABS shows a healthy result for construction lending in October.

According to the Housing Industry Association (HIA) the number of loans advanced for owner occupiers to construct new homes is at its highest level since March 2010, additionally, the upward momentum for new investment property lending is continuing.

“The dual growth evident for lending for construction across both owner occupiers and investors is a good sign for new home building activity in early 2014,” said HIA Chief Economist, Harley Dale.

“Six out of eight states and territories contributed to the growth in construction lending for owner occupiers.

“This is an important tick in the box for the residential construction outlook as the first round new home building recovery in 2012/13 was narrowly driven with only two states – New South Wales and Western Australia – accounting for the bulk of the growth.”

The ABS results for October 2013 showed a 1.0 per cent increase in the total number of owner occupier housing loans and loans for construction increased by 1.0 per cent. Loans for the purchase of a new dwelling increased by 3.6 per cent and loans for established dwellings (net of refinancing) increased by 2.0 per cent.

Posted by Charles Tarbey on 17/12/2013 at 12:00 AM | Categories:

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