Residential housing approvals are still strong across the country, which may give prospective real estate purchasers an encouraging signal to enter the market in the new year.
Despite a small dip over November 2013, dwelling approvals are still progressing at a strong level, according to figures released by the Australian Bureau of Statistics.
During November last year, the number of dwellings approved increased by 2.4 per cent in trend terms. This figure has been on the rise for 13 months, demonstrating the strength of the market and demand for brand new residential homes for sale.
"Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend," said Housing Industry Association (HIA) Chief Economist Shane Garrett in a January 9 statement.
Mr Garrett noted detached housing approvals were significantly stronger than multi-unit dwellings over this period, after detached homes recorded an increase of 5.7 per cent.
"Detached house approvals are at their highest level since during the stimulus in mid-2010. Total dwelling approvals totalled almost 174,000 over the past twelve months, a level of building which is much more consistent with Australia’s longer term housing needs," commented Mr Garrett.
On the other end of the spectrum, multi-unit approvals fell by 8.8 per cent, which could point toward a preferred housing type for homebuyers in the current market.
Strong Activity in South Australia
Great news for buyers of real estate in Adelaide, as the number of dwelling approvals increased dramatically in the state over November. In seasonally adjusted terms, approvals rose by a staggering 23.2 per cent - the highest figure recorded in the country.
However, this activity may change in the near future, after the South Australian state government-provided New Residential Housing Construction Grant expired on December 31 2013.
Through this grant, eligible applicants could access up to $8,500 for brand new homes valued up to $450,000. Homebuyers could also use this grant to go toward the construction of a home.
According to the HIA, this grant helped to boost housing approvals in the state by approximately 13.5 per cent and generated $18.2 million in state revenue, a welcome result after the grant was first implemented.
"The grant undeniably has helped to tackle the housing industry crisis, but we are not yet out of the woods," said HIA SA/NT Regional Director Robert Harding in a December 23 2013 statement.
