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Home buyers ‘tentatively’ return to market

finance-advice
1 minute read

Home buyers ‘tentatively’ return to market

by Emma Ryan 06 August 2020 1 minute read

New figures have shown a spike in buyer confidence, with more looking for a home loan in June than the month prior.

Home buyers ‘tentatively’ return to market
August 06, 2020

Housing finance figures in June showed that there was a 9.7 per cent improvement in lending to owner-occupiers purchasing established dwellings during the month.

“[This shows] that home buyers were tentatively returning to the market in June in response to the initial easing of COVID-19-related restrictions and the announcement of the HomeBuilder program,” commented HIA senior economist Geordan Murray.

“Evidence of improved market confidence and the HomeBuilder program is starting to emerge. The first movers were quick off the mark to secure available blocks of land. The number of loans to owner-occupiers purchasing residential land jumped 33.8 per cent in June.

That being said, Mr Murray noted that improvement in lending to those purchasing established dwellings was not replicated in lending for construction of new homes.

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“The figures tracking loans for construction are yet to reflect the pick-up in demand for new homes that has occurred since the HomeBuilder program was announced. In June, the number of construction loans actually dropped to the lowest monthly level since 2012,” he said. 

“The surge in lending for land purchases highlights a risk that the availability of residential lots where on-site work can begin within the time frame of the HomeBuilder package could limit take-up under the program.

“All states and territories are now receiving applications and we expect to see a material lift in the number of construction loans in the months ahead as the HomeBuilder program gains traction.”

Home buyers ‘tentatively’ return to market
Home buyers ‘tentatively’ return to market
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About the author

Emma Ryan

Emma Ryan

Emma Ryan is the deputy head of content at Momentum Media.

Emma has worked for Momentum Media since 2015, and has since been responsible for breaking some of the biggest stories in corporate Australia, including across the legal, mortgages, real estate and wealth industries. In addition, Emma has launched several additional sub-brands and events, driven by a passion to deliver quality and timely content to audiences through multiple platforms.

Email Emma on: [email protected]Read more

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