Home loans customers 'should not be concerned' about house building drop

Wednesday 30 September 2009

Article by Mozo

People, including those looking for low interest home loans, should not be phased by the recent dip in house building figures.

Published by the Australian Bureau of Statistics today (September 30th), the new statistics show that approvals decreased by 0.1 per cent in August, when seasonally adjusted.

In terms of private sector housing, this figure stood at a rise of 3.1 per cent.

This represents the first fall since May this year and went against market predictions expecting the rate to increase by 2.5 per cent.

However, this is "not disaster", according to one expert.

Responding to the news, chief economist for J.P Morgan Stephen Walters told the AAP that the broader market outlook is good.

He said there would be a gradual decline in the number of authorisations, to be expected as a result of the roll-back of the government’s first-time buyer home loan grant.

Conversely, earlier this month, the Performance of Construction Index from the Australian Industry Group and Housing Industry Association, showed that there had been an increase in property production in August.

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