Light at the End of the Housing Tunnel
There are fresh indications that property prices may have bottomed out and that housing recovery is gaining steam. Home lending in June rose to its highest level this year, driven by solid gains in NSW and Victoria. The number of home loans approved climbed 1.3 per cent to $13.8 billion in June, ABS figures show, reversing a 1.2 per cent fall in May. The revelations hint that there’s finally a light at the end of the tunnel after three years of negativity.
“The housing market is one of the worst I’ve seen in my career and it shouldn’t be, because the fundamentals are strong,” said Matthew Quinn from Stockland. “When it goes from a fear of losing money to a fear of losing out, that’s when we will see a change. That drives the urgency for buyers.” Weak sales activity and soft economic conditions are likely to continue to weigh on housing finance despite the positive indications.