New Home Lending Picks Up
Master Builders Australia
Industry Associations, Building Association
The rise in housing finance for new homes in May would indicate a return of home buyers confidence and confirms the forecast of a soft landing for the housing industry, according to peak building and construction industry organisation, Master Builders Australia. Mr Wilhelm Harnisch, Chief Executive Officer, said The latest rise in lending for new homes is positive and suggest a moderate housing downturn is now on the cards, although the industry remains extremely vulnerable to further interest rate rises. In that context we welcome last weeks decision by the Reserve Bank to leave rates on hold again. The total number of dwellings financed in May 2005 fell marginally by a seasonally adjusted 0.4 per cent to 55,732, but were up 10.5 per cent on the same time last year. The number of loans for the construction of dwellings rose by 2.3 per cent and were 3.6 per cent higher than the same time last year. The number of loans for the purchase of new dwellings rose by 1.7 per cent in May to be 28.5 per cent higher than the same time last year. The number of loans for the purchase of established dwellings fell by 0.7 per cent in May, but were 10.5 per cent higher than the same time last year. Mr Harnisch said Lending for investment housing fell by 6.8 per cent in May further confirming that the heat has gone out of this segment of the market and no longer a threat to interest rates. An encouraging sign in the May finance figures is that first home buyers appear to be returning back to the market but once again this trend will be highly dependent on no change to interest rates he said.
, Industry Associations