Property update: Housing finance figures
Choosing where to purchase a home requires you to take many factors into account, from the current home loan interest rates on offer to activity in the market itself.
Recent figures from the Australian Bureau of Statistics (ABS) highlight just what's going on in Australia's residential real estate market, which is beneficial for a range of buyers, from homeowners to investors.
According to data released by the ABS on June 10, dwelling finance commitments increased by 0.4 per cent in trend terms, excluding additions and alterations, month-on-month to April.
This could suggest that people are continuing to benefit from the 2.5 per cent official cash rate, which Reserve Bank of Australia Governor Glenn Stevens has suggested will stay stable for some time.
In seasonally adjusted terms, dwelling finance commitments soared by 1.7 per cent between March and April. First home buyer commitments dipped slightly, from 12.6 per cent to 12.3 per cent in trend terms, month-on-month to April.
However, this could put pressure on rental properties, as would-be buyers instead turn to renting rather than buying. For investors, this creates a favourable situation.
The total value of dwelling commitments in April was $27.7m in trend terms, or $27.8m in seasonally adjusted terms.
Purchases of established dwellings increased by 0.1 per cent month-on-month in trend figures, or 0.3 per cent in seasonally adjusted terms.
Master Builders Australia (MBA) Chief Economist Peter Jones commented on the figures, noting that despite the flat figure for owner occupied housing finance commitments specifically, the market is fairly stable.
"Finance commitments underpinning the upturn in residential building activity are holding up," Mr Jones stated in a June 10 release.
"Investors remain a key driver of the upturn in residential building activity, with the value of commitments for investment housing continuing to power ahead, up by 2.3 per cent in April to be 30 per cent higher than a year ago."
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