Released 12 June 2012



Australian Bureau of Statistics Housing Finance figures for the month of April saw a second consecutive rise in new home lending.

The number of loans for the construction or purchase of new homes increased by 2.1 per cent in April, following a 3.8 per cent rise in March.

HIA Chief Economist Harley Dale said given contemporary weakness in new home construction activity it is encouraging to see a second consecutive, albeit modest rise in this leading housing indicator.

“The number of loans for new housing has largely been bouncing along a bottom for over a year now, but hopefully that situation is coming to an end.”

Dale said the National Accounts update of last week signalled new housing as the weakest sector in the Australian economy.

“We need to be seeing a strong recovery across all leading indicators to avoid the prospect of housing activity falling throughout 2012. We perhaps have the makings of a mild recovery with housing finance, but there is no evidence elsewhere,” Dale said.

“Lower interest rates are providing a stepping stone towards turning around new home building activity. The onus, however, is on governments to act in terms of investment and policy reform to boost new housing supply.”