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  • 30 Sep 2016

New Home Funding Strong After Interest Rate Cut

If you're considering purchasing a business, one of the first things you might check is whether it is in an area showing positive growth. And a sure sign of growth is the emergence of new houses, and the arrival of new families.

Good news then that recent Housing Finance figures show that finance for new dwellings and first home buyers remain at positive levels.

CEO of Master Builders Australia, Wilhelm Harnisch, said the latest data supported the market view that new home buyers remain confident and that this will be further boosted by the recent interest rate cut.

“The number of housing loans for construction of new dwellings rose by 2.1% and the number to purchase new homes rose by 2.7%,” he said.

“Pleasingly, the number of loans to first home buyers held up well at 14.3% of total finance approved. First home buyer confidence will also be boosted by the recent rate cut. The relatively high number of housing loans will translate into higher levels of approvals and, in due course new housing activity in the next few months.

“This will ensure that the residential building sector remains a ray of sunshine in the economy, particularly in providing jobs,” Mr Harnisch said.