Today’s Australian Bureau of Statistics lending indicators data shows HomeBuilder is delivering the stimulus the construction industry needs, with the number of loans for the construction of new dwellings rising to its highest level in over a decade, and giving first home buyers confidence to enter the market.
In August 2020, the number of loans for the construction of a new dwelling increased by 22.9 per cent, up 34 per cent through the year.
HomeBuilder has seen first home buyers flood into the housing market with first home buyer loans rising dramatically in August to be 17.7 per cent higher, up 37.3 per cent through the year, the highest level since October 2009
The Housing Industry Association’s (HIA) Chief Economist Tim Reardon said that the data demonstrated the stimulus from HomeBuilder was emerging and protecting the jobs of tradies, quote;
“The short-term stimulus from HomeBuilder is emerging in the housing finance data released by the ABS today. This is particularly evident in the issuing of loans for the construction of new homes and in lending to first home buyers”
“There has been a substantial improvement in sentiment and confidence in the housing market.”
“It is evident in today’s data that there will be an increase in work on the ground in the December quarter this year which will protect jobs in the construction industry and the broader economy.”
Today’s results add to the growing number of leading indicators which show that HomeBuilder is delivering the support the residential construction industry needs. Recent data shows;
HIA new home sales data in the three months to August 2020 shows sales have risen 61.3 per cent compared to the previous quarter since HomeBuilder was announced.
ABS Building Approvals data shows private sector house approvals are at their highest level since February 2019, with over 9,000 approvals recorded.
The response to HomeBuilder from home buyers and tradies has been overwhelmingly positive and this data shows we are keeping the pipeline of construction flowing, which protects jobs.
The Morrison Government is committed to doing all we can to help Australians get into a home of their own as part of our Economic Recovery Plan for Australia.