Housing finance for new dwellings holds steadyFinance for new housing construction was holding steady for the year ending February 2015 to support supply with previous strong increases having eased off at the beginning of this year.The latest ABS Housing Finance data shows the value of finance for construction of new housing fell marginally by 0.2 per cent in seasonally adjusted terms for the month of February 2015, however there was a 13 per cent increase over the year. The value of housing finance for the purchase of new dwellings increased by 5.6 per cent in February 2015, but dropped 0.3 per cent for the year.”New housing finance is still creating a reasonable supply pipeline for Australians and seems set to continue to underpin building commencements at elevated levels,” said Executive Director Residential, Nick Proud.”This is good news given the need to bring on new housing supply to better meet demand and take pressure off prices, in the dominant Sydney market in particular.”However the month to month drop off in finance for the construction of dwellings is something to keep an eye on.”The percentage of first homebuyers, which at 13.7 per cent remains comparatively low compared to previous years where the proportion had climbed to over 31 per cent, is cause for concern.”Ideally, first homebuyers should make up around one third of the housing finance market. So on today’s figures there is room to encourage more first homebuyers into the market.”The key problem to focus on in addressing housing affordability is lack of supply – this is by far the biggest driver of increasing house.”It is encouraging to see the state, territory and federal governments starting to engage on this issue and we look forward to yesterday’s announcement of a working group taking this forward.”Media contact: FÂiona Benson | M 0407 294 620 | E [email protected]
Home Media Releases Housing finance for new dwellings holds steady