Today’s housing finance data for June confirmed that buyer demand for newly constructed dwellings remains strong, with approvals hitting their highest level since November 2009 (see next chart).
The number of finance commitments for new dwellings (i.e. construction plus new) rose by a seasonally-adjusted 2.2% in June to be up 10.3% over the year and tracking some 17% above the 5-year moving average level (5YMA). Despite the current ‘boom’ so far being smaller than the post-GFC episode (which was fueled by significant first home buyer stimulus), it does at least appear to be more enduring, which is good news (see next chart).
Looking at at the state-by-state breakdown, which is presented below on a rolling annual basis since it is not seasonally adjusted, shows that new home finance commitments appear to have plateaued in New South Wales and South Australia. However, this is being offset by Victoria, Queensland and Western Australia where the number of commitments are still rising (see next chart).
Overall, a good report for the housing construction industry.