Housing Demand Boosted
Housing demand is on the move upwards despite the number of home loans approved in June rising less than the market expected. Total housing finance rose 1.3 per cent in June, official figures show, which was less than what economists were predicting. “Housing demand has certainly picked up recently,” said NAB senior economist David de Garis.
“There was a big rise in March and another one in June. If it is wider than Victoria, then it could mean that people are starting to get interested in housing again, but if it is just Victoria then you’ll start to see some payback later this year.” Mr De Garis said he didn’t expect the housing finance figures to have much of an effect on the Reserve Bank of Australia’s interest rate outlook. He said depending on the European situation, rates may be cut again by the RBA.