As other areas of the economy wind down, the housing market could be a beacon of strength in the coming years, particularly for South Australia.
This bodes well for those interested in buying up rentals in Adelaide, as the strength could translate into great value gains in the long term.
The Australian Bureau of Statistics released the figures for home lending in September 2014 earlier this month, which yielded positive results. The Housing Industry Association (HIA) has crunched the numbers and determined that in seasonally adjusted terms, 8.5 per cent more people were taking out money for a home than in August.
On a quarterly basis, the HIA worked out a 2.2 per cent increase, which indicates the spring selling season was truly met with good demand from buyers. However, they have noted that it is not just those selling homes that purchasers have their eyes on.
"The strong rise in September was due to a strong result in the number of loans to those owner occupiers constructing new homes," said SA executive director for the HIA Robert Harding.
"Overall, however, today's result is a welcome update not only for the state's residential construction sector, but also for the wider economy."
Mr Harding said residential construction and housing would play an important role in the future, as other industries fell off. However, it would need policy to back it up, especially as he does not believe the low interest rate environment will last much longer.
This refers to the Reserve Bank of Australia and its decision to keep the cash rate at 2.5 per cent across the last 15 months, which has helped interest rates stay low. Glenn Stevens, RBA governor, did say in the 4 November statement that it would be appropriate to keep rates low for now, however.
To take advantage of the current environment and buy real estate in Norwood or a nearby area, contact a local real estate agent.