According to the Housing Industry Association (HIA) the number of loans to owner-occupiers for the purchase of residential land in WA increased 110% between July 2019 and July 2020.
These housing finance figures reveal lending across Australia for construction of a new home reaching the highest level recorded in 2 years, with finance approvals for the purchase of a block of land now 69.9% higher than in the same month last year.
HIA chief economist Tim Reardon said there had been a tangible improvement in sentiment and confidence in the housing market.
“Most significant, today ’s data shows that there has been a 30 per cent increase in the number of loans issued for the purchase of residential land for the second month in a row,” Mr Reardon said.
“This is the first indication of the impact of HomeBuilder. One of the early decision making stages of building a new home is the purchase of a suitable block of land.”
“The surge in land sales should see a recovery in the number of slabs being poured as early as the December quarter, as customers proceed through the process to design and construct a new home. This will protect employment in the residential building industry and across the economy into 2021.”
But with this surge in lending, there is a huge demand on available land to begin building before the end of the HomeBuilder grant in December 2020. The building and construction industry is calling on the federal government to extend its HomeBuilder grants program for another year to help the sector through the impact of the coronavirus.
Master Builders Australia (MBA) claims the scheme announced in June has been “the most effective government stimulus measure in a decade”.
MBA Chief Executive Denita Warn added “HomeBuilder should be extended for 12 months in the federal budget to help maintain a pipeline of work and be a lifeline for builders and tradies.”
“Our latest forecasts estimate that HomeBuilder is likely to boost new home building commencements by almost 10,000 during 2020-21” she said.
With this in mind, if you are ready to create the home of your dreams, there is no time to waste.
Touch base with us today to find out how we can help you take the next step towards owning your own home.