Housing loans update for the Northern Territory

Australia’s Housing Industry Association reports the number of loans for new homes increased by 19 per cent for first-time homebuyers and 2.9 per cent for those trading up  when comparing the three months leading to November 2010 and 2011.

The Northern Territory has seen the biggest changes. Experts say the end-of-year increase is driven by interest in investing in an established market; but it is pointed out that these gains are likely to decline without the help of a long-term policy reform, a short-term government stimulus plan and  a cut in interest rates.

Over the three months to November 2011 the total number of first home buyer loans was 19 per cent higher when compared to the same period in 2010, while loans for trade up buyers rose by 2.4 per cent.

When seasonally adjusted, the number of loans for new housing (construction and purchase of new homes), increased by 20.9 per cent in the Northern Territory, ahead of 17.5 per cent in the Australian Capital Territory and 13.4 per cent in South Australia, The comparable figures for Queensland and New South Wales were 8.4 per cent and  5.6 per cent respectively.

The number of loans for new housing fell by 8.9 per cent in Tasmania, 8.5 per cent in Victoria and 3.3 per cent in Western Australia.

The continuing recovery in the aggregate number of loans for first time buyers, and to a lesser extent trade up buyers, is encouraging and is being driven by the established market. Keep an eye on the Northern Territory, where the economy will take a boost from the new AUD32 billion Ichthys gas project deal.

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin, the capital of Australia’s Northern Territory.
http://www.woodwards.co/