Fall In Loans For New Dwellings As First Home Owner 'boost' Phases Down 1

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12th January 2010, 07:52pm - Views: 841





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Media Release



12 January 2010


FALL IN LOANS FOR NEW DWELLINGS

AS FIRST HOME OWNER ‘BOOST’ PHASES DOWN

Statement by Peter Jones, Chief Economist

Housing finance

commitments fell again in

November in line with the phasing down of the

Government’s First Home Owner ‘Boost’ Scheme, according to peak building and construction

organisation Master Builders Australia.

Mr Peter Jones, Master Builders’ Chief Economist, said

“Demand for housing finance is

beginning to show the effects of the phasing down of the ‘boost’ scheme, with the proportion of

all dwellings financed by first home buyers down to its

lowest level since October 2008, the

month during which the ‘boost’ was introduced.” 

“The recent correction in demand for housing finance comes after a fairly strong growth phase,

but the housing market will increasingly look to upgraders and investors to fill a gap left as the

bring forward of first home buyer demand reverses.”  

He said,

“How the market reacts to recent Reserve Bank

rate rises

will also be important in

terms of understanding prospects for housing over the next few months.”

“The investment-driven side of the housing market is still being affected by a lack of project

finance due to the credit crunch, with construction for rent or resale little changed over the year.”

“Master Builders believes the Reserve Bank needs to take a more cautious approach on

interest rates and ensure that recovery in the interest-rate-sensitive residential building sector

becomes firmly entrenched and is able to lead the economy out of the downturn.” 


The total number of dwellings financed for owner occupiers, seasonally adjusted, fell by

5.6 per cent in November, to be up 14.1 per cent on November last year.


The number of loans for ‘new’ dwellings

(construction/purchase of

new dwellings,

combined) fell by 6.1 per cent in November to be up 65.3 per cent on the same month last

year:

-

the number of loans for the construction of dwellings

fell by

6.5

per cent in

November, to be up 88.5 per cent on the same month last year;

-

the number of loans for the purchase of new dwellings

fell

by 5.1

per cent in

November, to be up 20.1 per cent up on the same time last year.  


The number of loans for the purchase of established dwellings fell by 5.1in November, to

be up 7.4 per cent on the same time last year.


The value of lending to finance the purchase of investment housing rose by 2.1 per cent

in November, to be up 26.1 per cent on a year ago.


For further information contact:

Peter Jones, Chief Economist, Mobile 0403 440 838






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