Home loan approvals rise in Melbourne

The housing market in Melbourne has started to show signs of picking up, with new figures indicating a 1.8 per cent year-on-year increase in home loans approvals in the first four months of 2011.

Data from the Australian Bureau of Statistics showed that there were 51,150 commitments made during this period, up from 50,603 the year before.

Dr Andrew Wilson, senior economist for Australian Property Monitors, said in a piece for the Sydney Morning Herald: "This is an encouraging sign for the housing market, considering early-2010 was characterised by high levels of buyer activity."

He added that there is particularly good news when the April figures are considered because there was a rise in approvals of 7.5 per cent.

Earlier this month, Bernard Salt, a partner at KPMG, told Australian Broker News that Generation Y Aussies are likely to help drive the property market in the coming years.

The expert explained that this demographic was not hit as hard by the global financial crisis as those who are older.

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