The latest housing figures from the Australian Bureau of Statistics show new home lending commitments increased by 0.4 per cent over September, according to the Housing Institute of Australia (HIA).
Marginal increases to lending have been recorded over the past seven months, leaving new home financing stable at the 8,300 level since April 2013.
Despite the slow growth, lending activity is significantly stronger than this time last year, particularly for new homes and construction starts.
The annual increase in lending for home construction was up 6.3 per cent, aided by a 0.5 per cent rise during the September 2013 quarter.
While loan activity for new home purchases rose only 0.1 per cent in the September quarter, it is currently 27.5 per cent higher than September 2012.
Those purchasing their first property in North Adelaide were not underrepresented in the figures, as lending for new homes in South Australia rose by 10 per cent in September. Only Tasmania had a higher increase, with a 29.6 per cent growth.
“Other housing market indicators like prices, approvals and sales confirm that the industry is entering into a strong recovery,” HIA Senior Economist Shane Garrett said in a November 11 media release.