New research has supported the idea that Australia’s housing market “reached a turning point” midway through 2019.
HIA economist Angela Lillicrap has analysed the latest ABS data, providing insight into February figures.
“The number of loans to owner-occupiers for the purchase or construction of a new home increased by 5.8 per cent in the three months to February 2020 compared to the previous three months, providing further evidence that the housing market was heading into 2020 looking up,” Ms Lillicrap said.
“These results, along with other leading indicators such as new home sales and building approvals data, continue to confirm that the housing market reached a turning point midway through 2019.”
“The total number of loans to owner-occupiers in the three months to February 2020 was up by 5.4 per cent compared to the previous quarter, to be up by 12.3 per cent compared to the same period last year. This was driven by lending for new homes, which was 12.7 per cent higher than this time last year versus established dwellings, which were 1.3 per cent lower.”
Further, Ms Lillicrap noted that first home buyers remained active in the market, “with the largest number of loans issued to first home buyers during the month in over a decade”.
“Investor lending was also improving, up by 3.4 per cent in the quarter to be 6.3 per cent higher than the same time last year.
“These results show that at least until the end of February, we were looking at solid home building activity across most regions in 2020,” concluded Ms Lillicrap.