Published on November 15th, 2012
Housing construction sector recovery patchy
The recovery of the housing construction sector is proving positive in some aspects for September of this year, according to Australian Bureau of Statistics data.
The Housing Industry Association's chief economist,Harley Dale,found that while there are some areas where the building sector must focus its efforts, there is cause for optimism.
"In terms of owner occupiers, there is still some growth in the first time buyer market, but the modest improvement in finance to trade-up buyers ran out of steam in the September 2012 quarter.
"The number of loans for the purchase of a new dwelling continues to mount an encouraging recovery," he said.
Mr Dale said that if you can afford it, now is a great time to build a new home as currently it is a very competitive market with low borrowing costs, and a large amount of tradespeople on offer.
In the ninth month of 2012, Tasmania saw 28 per cent growth in the total number of seasonally adjusted loans for the building and purchase of new properties, New South Wales followed with 5.1 per cent and 2.1 per cent was evident in Queensland.
It comes as Census data shows there is a correlation in Victoria between homeowners' weekly income and the size of their mortgage repayments.
The Real Estate Institute of Victoria (REIV) analysed weekly income in particular areas with their data on median property prices.
It found that a suburb's median house price was $965,000 where the weekly income of a mortgage holder was earning over $2,500 a week.
Those living in an area where the median house price is $402,500 are earning between $1,800 and $1,999.
REIV also found that if it weren't for condensed housing, only wealthy people could afford to live in the Melbourne CBD.
The city's east has a median monthly mortgage repayment of $1,989, while the heart of the city has median repayments of $1,230 every 30 days.