Housing reaches up despite commercial construction slump
Performance in the construction sector dipped in April, but there were some improvements in specific areas, according to the Housing Industry Association (HIA) in a May 7 release.
The announcement comes on the heels of the most recent Australian Industry Group/HIA Australian Performance of Construction Index (PCI).
Drop not indicative of housing promise
Australia's construction sector during April was in "contractionary territory at 45.9", according to the HIA. This represents a 0.3 per cent drop. However, current homeowners considering a mortgage refinance may find themselves in a good position.
When construction is in a contractionary phase, housing supply can often not keep up with demand for dwellings. This puts existing property owners in a comfortable place if they want to obtain a good price for their current property. A growth in capital values is favourable for homeowners, too.
However, on the whole, it tends to be commercial construction rather than house building, which has pulled the PCI down.
Strength in house building
"The continuing success story of the [PCI] in 2014 is house building, with the segment expanding for eight consecutive months," Diwa Hopkins, economist for the HIA, explained.
"Acceleration in the rate of expansion during April also provides cause for further optimism."
Eventually, this could lead to more choice for homeowners looking to upgrade, as increasing home construction paves the way for greater dwelling choice.
It's not just houses that are set for good things, according to Ms Hopkins.
The apartment building sub-index returned to an expansionary phase last month, which is positive for those looking to secure property in upcoming months.
Whether people want townhouses to apartments, there is an extensive range of mortgage products available to Australians. From loans with lines of credit to more stripped back options, there is something for every kind of borrower.