Housing
RESIDENTIAL

Mortgage borrowing for new homes strong

ABS housing finance data commenced on a positive note with total dwelling commencements up by 0.7 per cent in January 2018.

“Most encouraging for our members is that mortgage borrowing for the construction of new housing was particularly strong, up by 3.1 per cent,” Matthew Pollock, National Manager of Housing and Economics said.

“Finance for First Home Buyers (FHB) has continued its positive trend rising again in January as a share of total finance commitments to 18 per cent,” he said.

“However while investor borrowing remained little changed from recent months, up by 1.1% in seasonally adjusted terms it’s fallen 6.7 per cent from 2017,” Matthew Pollock said.

“Overall, despite a modest increase in the value of finance commitments in January 2018 the number of new dwelling commitments is down by more than 3,000 on the 12 month peak recorded in August 2017,” Matthew Pollock said.

Source: Master Builders.

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