Opportunities grow as lending figures rise on May
If you're interested in taking out your first mortgage or a construction home loan in the coming months, you could be in luck. The latest release from the Australian Bureau of Statistics has found new home lending activity increased during May, which could present a wonderful opportunity for buyers to consider moving into the market and securing their first slice of real estate.
Over the month, the number of construction loans taken out increased by 0.9 per cent. This figure also rose by 3.1 per cent over the three months prior, highlighting the nationwide growth of building starts across the region. Furthermore, loans for the purchase of new dwellings also increased by 1.6 per cent during May.
Housing Industry Association Chief Economist Harley Dale said the growth of funding for these sectors was an encouraging sign of development across the nation.
"Construction loans, the principal component of new home lending, are at their highest level in over four years. New dwelling commencements are on track to hit their second highest level on record in 2014," said Mr Dale in a July 11 statement.
Furthermore, large alterations and additions to existing properties have seen an increase in popularity. While renovations dropped to a decade low in 2013, this turnaround could be the sign of recovery that the market needs.
"With low interest rates and the recurrence of capital gains, there is the opportunity for the alts and adds market to gather upward momentum," said Mr Dale.
Across the nation, these figures of growth were varied. For example, Tasmania saw the largest growth in loans for new housing, increasing by 13.8 per cent over the three months to May. Following this, Western Australia (8 per cent) and Queensland (7.6 per cent) saw degrees of growth across their own finance markets.
Image credit: FutUndBeidl