Home building has picked up, and May's rate cut could see even more confidence injected in the sector.
ABS figures released yesterday show dwelling approvals rose 7.4% in March, partially offsetting the 8.8% decline in February. Master Builders chief economist Peter Jones predicted the recent RBA rate cut may see further improvement in building.
"As the impact of lower rates flows through we should see the number of residential building approvals pick up in the coming months," Jones said.
Jones argued that the Reserve Bank "should not rule out" further rate cuts. He pointed to the low level of home building, claiming current levels would not meet demand.
"The current level of dwelling approvals is running at 140,000, way below what's needed to even provide for population growth let alone to begin to eat into the housing shortage estimated by the Government's own Housing Supply Council at more than 200,000 dwellings.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out