Finance Improves Building and Construction Sector Prospects
16 October 2012
ABS Housing Finance Commitments for August have confirmed a firming in building finance according to MBT
Finance Improves Building and Construction Sector Prospects
Today’s release of the Australian Bureau of Statistics Housing Finance Commitments for August have confirmed a firming in building finance according to Master Builders Tasmania, the peak employer body representing the building and construction industry.
Mr Kerschbaum, MBT's Executive Director said, "Residential finance commitments have now improved for the last 5 months in a row. While the finance approvals are still considerably lower than they were a few years ago, the indications are that they may have bottomed out. The approvals usually increase at this time of the year so we are looking forward to some more positive figures into the future."
Mr Kerschbaum continued, "Today's figures show that finance commitments increased by a healthy 5.9% (seasonally adjusted) over the previous month and 2.3% in trend terms. This type of growth has been lacking lately and it is encouraging that a sustained improvement in finance approvals has taken place."
Mr Kerschbaum concluded, "The recent decision by the Reserve Bank to cut interest rates and the prospect that there will be more cuts shortly should encourage people to consider investing in a new home or undertaking renovations, as the market is at its most affordable levels in a decade."
For further comment contact Michael Kerschbaum (w) 6210 2000 or (m) 0438 343 810
