Housing approvals have increased by 14.3% year on year, driving the building industry

The total seasonally adjusted dwelling units approved in May increased by 14.3%, a 9.9% increase on April, according to the latest building approvals figures from the Australian Bureau of Statistics.

The renovations market has also been tipped to exceed $30 billion after a prolonged period of weakness with experts advising renovators to take out home insurance to provide a layer of financial protection.

Master Builder’s director Paul Bidwell said these positive results confirm that the month-on-month volatility can be misleading. “We must look at medium and long-term trends if we want to really gauge where the industry is heading.”

The figures indicate good news for building and construction, with industry punters suggesting the April slump was merely an aberration and growth is once again on the horizon.

“All in all, May has been a good month, confirming that the recovery in the residential construction is underway, primarily on the back of unit developments,” said Bidwell.

With a strengthening building industry and record low interest rates, now’s a good time to search the home loan market for a competitive home loan.