Housing market healthy: HIA

The level of new home lending remained very healthy in July 2009, according to data from the Australian Bureau of Statistics (ABS).

The total number of seasonally adjusted loans for owner occupiers (net of refinancing) fell by 2.2 per cent in the month of July 2009 but was up by 5.1 per cent over the quarter.

Similarly, the number of loans for the purchase of new dwellings eased by 0.5 per cent in July but was 2.8 per cent higher over the quarter.

Housing Industry Association chief economist Harley Dale said loans to both first home buyers and non-first time buyers were higher over the three months to July 2009 compared to the same period last year.

“While first home buyers continue to lead the way, momentum is waning, so it is encouraging to see a lift outside this market, something that was lacking earlier in the year,” he said.

“The interest in new home building from trade-up buyers is growing and this trend, along with a recovery in new investment, needs to continue to ensure a sustainable and broad-based recovery for residential construction.”

In seasonally adjusted terms, the total number of owner occupier loans in July 2009 fell by 0.8 per cent in New South Wales, 1.3 per cent in Victoria, 3.1 per cent in Queensland and 3.3 per cent in Western Australia.

South Australia and the Northern Territory both recorded an increase in the total number of loans, achieving 0.1 per cent and 4.9 per cent growth respectively.

The level of new home lending remained very healthy in July 2009, according to data from the Australian Bureau of Statistics (ABS).

The total number of seasonally adjusted loans for owner occupiers (net of refinancing) fell by 2.2 per cent in the month of July 2009 but was up by 5.1 per cent over the quarter.

Similarly, the number of loans for the purchase of new dwellings eased by 0.5 per cent in July but was 2.8 per cent higher over the quarter.

Housing Industry Association chief economist Harley Dale said loans to both first home buyers and non-first time buyers were higher over the three months to July 2009 compared to the same period last year.

“While first home buyers continue to lead the way, momentum is waning, so it is encouraging to see a lift outside this market, something that was lacking earlier in the year,” he said.

“The interest in new home building from trade-up buyers is growing and this trend, along with a recovery in new investment, needs to continue to ensure a sustainable and broad-based recovery for residential construction.”

In seasonally adjusted terms, the total number of owner occupier loans in July 2009 fell by 0.8 per cent in New South Wales, 1.3 per cent in Victoria, 3.1 per cent in Queensland and 3.3 per cent in Western Australia.

South Australia and the Northern Territory both recorded an increase in the total number of loans, achieving 0.1 per cent and 4.9 per cent growth respectively.

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