New home loans on the up Down Under
Australian real estate experts welcomed the news update on finance for new home building which shows an improvement during the month of March.
The new home building sector has experienced a fall in activity in recent times so the report from ABS Housing Finance showing a rise of 3.5 per cent in the number of loans for the building or purchase of new homes is a hopeful indicator of better times ahead for the home construction industry.
The Housing Industry Association believe the new home industry would benefit from further interest rate cuts – a recent fall in the base rate needs to be passed on in its entirety to Australian mortgage customers from the country’s banks and other lenders.
Industry experts feel that state and federal government should be pulling together to cut the red tape associated with new home developments in order to boost new home lending which will in turn help the wider economy.