A healthy June quarter for new home lending indicates a recovery in dwelling starts over the second half of the year, says the HIA.
According the HIA's chief economist, Harley Dale, the number of loans for construction increased for an eighth consecutive month in June. The HIA is expecting to see a 15 per cent increase in housing starts by the end of 2009.
The total number of seasonally adjusted loans for owner occupiers increased by 1.1 per cent in June, and was up by 7.4 per cent over the quarter. The number of loans for construction increased by 2.8 per cent over the month and was up by 21.7 per cent over the June quarter. The number of loans for the purchase of new dwellings decreased by 0.2 per cent, but increased by 6.4 per cent over the quarter.
"We saw a near doubling in the number of first home buyer loans in the June 2009 quarter when compared to a year earlier ... Outside of the first home market the recovery has been slower, but interest in new home building from trade-up buyers and investors is growing and this trend needs to continue," Dale says.
Lending for investment in new residential properties increased by 38 per cent in the quarter, but was still 25 per cent down on the same time last year.
In seasonally adjusted terms, the total number of owner occupier loans in June 2009 increased by 1.5 per cent in Victoria, 1.6 per cent in Queensland, 0.6 per cent in South Australia, 3.5 per cent in Western Australia, 17.9 per cent in Tasmania, 0.6. per cent in the Northern Territory abd 4.9 per cent in the ACT. Loans dropped by 0.1 per cent in NSW.
