Australian property market continues 11-month upward trend

The Australian property market continues to gain strength, according to the latest monthly housing finance figures released by the Australian Bureau of Statistics.

The statistics show the number of Australians buying homes in May increased by one percent, the eleventh consecutive monthly increase. Seasonally adjusted figures put the increase in the number of home loans at 4,5 percent, compared with the previous month.

In value terms, commitments to investment property loans increased a further one percent since April, reflecting increased buying of houses and units for rent or resale for the tenth consecutive month.

Mortgage Industry Association (MIAA) chief executive, Phil Naylor, says: “These latest statistics indicate consumers are still confident in the market and determined to achieve
their home ownership dreams.

“The statistics also support findings from the latest MIAA/BankWest Home Finance survey, which show 60 percent of first time buyers expect to enter the market within the next three years, despite the expectation of future rate rises.”

Mr Naylor says the Federal Budget’s family benefits and tax cuts have further contributed to a general feeling of confidence among home buyers. “This is also reflected in the number of owner-occupiers refinancing their loans, which rose 1 percent in May.”

New South Wales and South Australia experienced the biggest increase in housing finance commitments (1,8% each) followed by Western Australia (1,6%). The only decrease occurred in the Northern Territory (by 0,07%). The number of first home buyers commitments also dropped slightly when compared to April figures, but remain higher than the same period last year.
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