29 Apr April 2014
The Housing Industry Association Summer Report indicated that housing starts increased by 11.7 per cent to 161,970 during 2012/13, following two consecutive years of decline. Activity is forecast to rise again in 2013/14 by 2.8 per cent, going on to reach over 170,000 by 2016/17.
A rise in new housing construction is great for first home buyers and those looking to purchase. Rises in approvals are usually followed by a rise in availability, and this should help to keep housing price rises in check and in reach for those entering the property market for the first time.
In 2013, strong demand for houses encouraged price rises around the country, with average home prices increasing nationally by 9.8 per cent last year. This trend was also reflected in a rise in unit prices. However, auction clearance rates in all capital cities have continued to remain above 70 per cent, which would indicate that despite the recovery in housing prices, property is still very affordable to the average purchaser and bargains are still available in most markets.
With interest rates looking set to remain on hold at historically low levels for the remainder of the year, both mortgage holders and property buyers can look forward to a very competitive loan market, with plenty of opportunities to save. Conditions look positive for increased housing availability, which should keep home prices at affordable levels in 2014/15.
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