HomeBuilder boom begins to fade

Yesterday’s mortgage data from the Australian Bureau of Statistics (ABS) suggests that HomeBuilder and associated stimulus is starting to fade.

According to the Housing Industry Association (HIA), first home buyer (FHB) activity in the construction market hit “its highest level since the stimulus associated with the GFC”. These FHBs “were significant beneficiaries of the [HomeBuilder] program” and have also taken “advantage of other stimulus measures such as the First Home Loan Deposit Scheme and state government incentives”. However, the “data for March suggests that the surge due to HomeBuilder is starting to ease from record levels”.

The next chart confirms the HIA’s view, with both FHB and construction mortgage commitments fading:

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