 Alarming decline in homeloan approval
Decline in home loan approvals alarms both the Housing Industry Association (HIA) and the Master Builders. The data revealed by the Australian Bureau of Statistics (ABS) confirms a 3.5 percent sag in housing loan approvals in Queensland this February. This record is way far from the 1.8 percent drop for the whole Australia.
“There remains no evidence that the volume of upgrade owner occupiers and investors entering the new home sector is proving sufficient to offset the removal of stimulus to first time buyers,” Warwick Temby, HIA executive director said. Construction loans are going downhill despite that the in general this level is higher compared 13 years ago, he further commented.
While according to Master Builders’ Housing Policy director Paul Bidwell, first home buyer approvals remain stable which takes more than 15 per cent of housing loan approvals. However, it is expected to drop long term due to the continues hike in interest rates .
Master Builders’ Survey of Industry Conditions in March, on the other hand, showed optimistic results as it signified growth in the housing industry specifically on Queensland.
Consumer confidence is still stable despite that finance conditions are erratic across Australia, particularly on the Gold Coast and in Far North Queensland,” according to Bidwell. The recent interest rates increase is another setback in the industry but conditions are expected to pick up in the next few months.
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