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:
There are 810 words left in this subscriber-only article.
Start your free 14-day trial today!
The HomeBuilder scheme officially ended on 31 March, thus we should expect to see further declines in construction finance commitments going forward.
That said, lending for renovations hit their highest level since 2009, up 63% year-on-year in March, which will support tradie jobs:
Later today we will receive dwelling approvals for March, which will provide further insight into the outlook for dwelling construction.
- Angry immigration elephant in the room tramples Greg Jericho - May 5, 2021
- Are property listings rising or falling? - May 5, 2021
- Morrison sits on his hands as quarantine failures pile up - May 5, 2021