Business confidence in building sector positive for home buyers
Confidence in the building and construction industries is currently at a six-year high, according to the Master Builders National Survey of Building and Construction released on April 24.
The survey found that current business confidence in these industries is at the highest level since March 2008.
Such findings certainly spell good news for those looking to undertake a mortgage refinance and purchase a new home. Whether Australian homeowners' current properties are too small for their changing needs or they simply want a change of scenery, there can be multiple reasons to move. Strength in business confidence is certainly good news for those looking to buy a home, as the industries show signs of recovery.
The findings relate to the March quarter, showing that building activity this year should continue steadily following greater confidence in the residential building industry, explained Master Builders Chief Economist Peter Jones.
"Results for the March quarter show that we are beginning to see signs of the stronger confidence necessary to underpin a sustained recovery," Mr Jones explained
A low cash rate has provided home buyers with affordable mortgage products. Things are now looking increasingly positive for builders, too.
"Builders' confidence in the prospects for their own business[es] rose for the third consecutive quarter. This is particularly reflective of the residential building sector's response to low rates and is an encouraging trend indicating industry's expectation that business activity will continue to rise over the next six months," noted Mr Jones.
Mr Jones also suggested that the government needs to "foster business growth" with careful strategies in the upcoming budget. Furthermore, there needs to be a balance between Australian economic growth and returning the books to black.
New South Wales was also highlighted as a top performer for dwelling starts by Mr Jones.