The level of new home lending remained healthy in August 2009, according to recently released Australian Bureau of Statistics (ABS) data.
Loans for the construction of new homes and the purchase of new homes grew 4.7 per cent following a slight fall in July.
New housing loans have now increased in 11 of the last 12 months.
“Construction lending increased by 9 per cent over the three months to August 2009 and is up by 60 per cent compared to the same months in 2008, clearly signalling the potential for a strong recovery in new home building,” Housing Industry Association (HIA) senior economist Ben Phillips said.
“The concern is that supply is getting bogged down in the approvals process and the RBA’s interest rate increase will hit demand.”
The total number of seasonally adjusted loans for owner occupiers (net of refinancing) grew by 1.3 per cent in the month of August 2009 but was up by 39.1 per cent compared to August 2008.
The number of loans for construction grew by 4.6 per cent over the month, while the number of loans for the purchase of new dwellings grew by 4.9 per cent.
“Owner occupier loans to both first time buyers and non-first time buyers are higher over the three months to August 2009 compared to the same period last year. First home buyers are leading the way still but momentum is waning so it is encouraging to see a lift outside this market, something that was lacking earlier in the year,” Mr Phillips said.
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