More Positive Signs in Housing Finance

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Updated: July 12, 2013

The rise in housing finance figures released today by the Australian Bureau of Statistics provide more positive signs for the residential building industry.
The total number of dwelling commitments rose 1.8 per cent in May, seasonally adjusted. The number of commitments for the construction of new dwellings rose 0.6 per cent and commitments for the purchase of new dwellings rose 0.7 per cent, seasonally adjusted.
Peter Jones, Master Builders Australia’s Chief Economist said the figures have risen for five consecutive months and indicate interest rate cuts may finally be starting to take hold.
“Nationally, loans for the construction of dwellings and for the purchase of new dwellings combined rose 0.6 per cent in the month, to be up 18.1 per cent from May 2012. Strong increases in commitments were recorded in Western Australia, New South Wales and South Australia.
“The figures suggest that the recovery is starting to strengthen and is certainly welcome for the industry.
“Home builders are banking on further improvements and for lower interest rates to continue to work to drive an improvement in building activity,” Mr Jones said.