 Home loan approvals on the rise
Home loan approvals for owner-occupied housing rose 3.5 per cent in January, to a seasonally adjusted 55,628. Figures from the Australian Bureau of Statistics show the fourth monthly rise in a row in housing finance numbers.
The report, which was published on Wednesday shows that economists were not far off with their predictions of a four per cent increase.
"People are getting back into the market at this time and taking the opportunity of softer prices and lower interest rates," said ANZ economist Alex Joiner.
"There is an opportunity to enter the property market now and that is why housing finance approvals are still rising."
With interest rates falling considerably since September last year owning your own home has become more affordable for many Australians.
Increases in the proportion of new home loans going to first home buyers are encouraging, with the figure rising to 26.5 per cent in January, the highest share of first home owners since records began in 1991.
This follows the federal government's decision to increase the first home owner grant in September. The grant is due to revert back to it's original $7,000 in June, pushing many first home owners to purchase property sooner rather than later.
However, Dr Joiner warns that the recovery in housing finance should be viewed with caution as economists forecast the jobless rate to rise significantly in 2009.
Join the discussion on Everything else about home loans
|