Housing Markets Shows Signs of Steady Recovery
A steady recovery is under way in the interest rate sensitive housing market, with prices rising over the past nine months.
The Australian Bureau of Statistics has confirmed that established house prices appreciated by 0.3 per cent in the September quarter. It has also made significant positive revisions to its first and second quarter index results, which collectively mean that house prices are now up 0.3 per cent over the past 12 months. In fact, house prices have increased by a total of 0.9 per cent over the first nine months of 2012.
Further evidence of a property recovery came when Australia’s biggest mortgage broker, AFG, disclosed that it had approved the highest volume of home loans in October in its history, and for any month since March 2009.
AFG also commented that “refinancing was not the driver for mortgage volumes last month, with the level of refinancing at its lowest level than since September 2009”.