 Housing finance on the up
Six months of consecutive growth in housing finance will please those in the industry. Australian Bureau of Statistics released figures today that show housing finance in Australia grew a seasonally adjusted 4.9 per cent in March from February.
Low rates, first home buyer grant boosts, and better housing affordability are behind the growth, according to economists.
Economists surveyed ahead of the announcement on average had expected a rise of 4.0 per cent in March.
However, economist at JPMorgan Helen Kevans, said new home buyers accounted for 27.3 per cent of loans in March, which could cause a problem further down the line. With unemployment expected to rise sharply in the second half of 2009, some of the new home buyers may find themselves in a position of not being unable to repay loans.
"This could be a disaster waiting to happen," she said.
The value of investment housing loans in March rose 4.7 per cent from February.
The figures seem to show that the Reserve Bank of Australia have provided strong stimulus by cutting rates. ANZ senior economist Katie Dean said the March housing finance data were "very solid".
Join the discussion on Trends & Where to Buy
|