It seems consumers are happy to spend more money on their home finances as new data shows the value of this is on the rise nationwide.
According to the latest figures from the Australian Bureau of Statistics (ABS), financial commitments on owner occupied housing and investment property, excluding refinancing, rose by 1.2 per cent from March to April this year. The total value of these has risen to $14.5 billion and $8.1 billion respectively.
It is thought that this growth in housing finance is caused by consumers trying to lock in the record low interest rates available in Australia at the moment. Indeed, the Reserve Bank of Australia has cut its benchmark rate to 2.75 per cent.
Since then, there has been increased interest in the Australian property market, which has been shown by weekend auction results in areas such as Sydney and Melbourne.
President of the Real Estate Institute of Australia, Peter Bushby, said: "It’s encouraging to see buyers responding to interest rate cuts and the stronger outlook for housing."
Posted by Craig Francis