Securing finance is often the first step for most people buying property in Prospect. The latest official lending figures suggest that more people are opting for new real estate, as the Australian Bureau of Statistics (ABS) points to a rise in loan approvals.
Investors and owner occupiers alike are keen to make the most of new properties throughout the country, the ABS reveals, as borrowers respond to February's cash rate reduction.
The latest data refers to March lending, so the effects of May's rate cut are still yet to be felt. However, the good news is that borrowers appeared to be making the most of the 25 basis point cut brought into force on February 4.
In trend terms, the ABS figures show the number of loans for owner occupied housing increased 0.4 per cent from the previous month. There was also a 0.7 per cent increase in loans approved for the purchase of established properties.
The Housing Industry Association (HIA) commented on the data, suggesting that new home lending may have reached its peak towards the end of last year. HIA Economist Diwa Hopkins said the real test will be how much of an impact the May rate cut has on consumer attitudes towards property.
"Lower lending rates have been a vital element to new home building activity and the now-crucial role it is playing in supporting the broader domestic economy," noted Ms Hopkins.
"A reduction in the excessive and inefficient taxation of new housing relative to existing property would complement this low interest rate environment and drive further growth in investment in new rental as well as owner-occupier stock."
If making the most of the all-time low cash rate is on your agenda at the moment, make sure you speak to the team at Ray White Adelaide. We're here to help no matter whether you're a first-time buyer or seasoned property investor.