Record Increase for New Home Construction Loans
New Home Construction Loans
The number new home construction loans increased by 27.1% during September 2020. This increase is the largest since the Australian Bureau of Statistics(ABS) began data collection in 2002.
The ABS building approvals released on November 3, shows the third strongest month of approvals for detached houses in 16 years.
HIA’s Chief Economist stated he does not expect this result to be peak of the cycle. “This new work entering the pipeline will offset the significant decline observed from March as restrictions were announced and will ensure a stable supply of new building projects over the next nine months.”
These high volumes of sales, loans and approvals following the announcement of HomeBuilder will be relatively short lived. HomeBuilder was designed to provide consumers with confidence to return to the detached housing market. It has been very effective at achieving this goal.