“The rejuvenation in the housing market has continued following the three interest rate cuts this year (2019) with lending for the purchase of a home rising 7.4 per cent for the September (2019) quarter,” stated HIA Economist, Angela Lillicrap.
Now that the dust has settled after the 2019 Federal election and parties review their policies going into 2020, one thing that must change is the attack on capital gains tax and negative gearing, HIA Managing Director Graham Wolfe said.
The Australian Industry Group/Housing Industry Association Australian Performance of Construction Index (Australian PCI®) climbed 1.3 points to 43.9 in October (2019), indicating a slight easing in the construction industry’s overall rate of contraction (readings below 50 indicate contraction in activity, with the distance from 50 indicating the strength of the decrease).
“The cuts to interest rates have more than offset the rise in home prices to ensure an ongoing improvement in housing affordability,” stated Tim Reardon, HIA’s Chief Economist.
“New home sales bounced back in September (2019) to return to levels seen during the latter half of 2018,” stated HIA Economist, Angela Lillicrap.
Further detail about the Federal Government’s plan to help first home buyers through its loan deposit scheme is a welcome step in helping more Australians into property ownership and improving confidence in the housing sector.
“The cost of land is one of the main components in determining the price of a new home,” said HIA Economist Angela Lillicrap.
After recording the largest losses during the recent housing market downturn, the premium end of Sydney and Melbourne’s housing market is driving the rebound in capital gains.
“Housing is a national priority and HIA welcomes the Senate passing legislation that will facilitate the next step in making the First Home Loan Deposit Scheme a reality,” stated Graham Wolfe, HIA Managing Director.
“We could be seeing the early signs of the positive impacts from recent policy stimulus with lending for both new and existing homes up for the month and the quarter,” stated HIA Economist, Tom Devitt.