Sales of Multi-Unit Dwellings in Australia Increase New Home Sales, According to Housing Industry Association

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Rockingham mortgage broking firm, The Mortgage Gallery Rockingham, analyses findings and explains what they mean to prospective home buyers.

The Mortgage Gallery Rockingham

We are seeing an increase in home loan applications. The lowering of interest rates signals that banks are ready to do business with more home buyers, and our network of banks is doing a good job of making it easier to buy a home.

According to the Housing Industry Association (HIA), seasonally adjusted sales of new homes rose 2.8% in June. According to an HIA survey, multi-unit sales rose 15.7%, while stand-alone houses rose by 0.7%.

HIA Chief Economist Harley Dale, while encouraged by the numbers, sounded a cautionary note: “It is, however, a stark reminder of how much catching up is left in the multi-unit sector when a lift of this magnitude still leaves sales volumes 36 per cent below their 10-year average.”

Dr Dale also noted that while falling interest rates will make it easier for many buyers, “The large gap between the cash rate and variable mortgage rates will blunt their positive impact.”

It is also Dr Dale’s opinion that the federal government should act to further assist housing sales. He said, "State governments have a crucial role to play, as do local governments, but it is the federal government that needs to act first and lead by example.''

Justin Smith, Principal of The Mortgage Gallery Rockingham, was slightly more optimistic than Dr Dale. According to Smith, “We are seeing an increase in home loan applications, in both the single home and multi-unit sectors. The lowering of interest rates signals that banks are ready to do business with more home buyers, and our network of banks is doing a good job of making it easier to buy a home than it was a year or two ago.”

Smith continued, “It’s a great time to be a home buyer. Demand hasn’t caught up to supply yet, but other financial indicators have. Consequently, we are on the tail end of a buyer’s market. At the same time, more people are finding that they are able to afford a house. Prices are still fairly low, interest rates are fairly low, but employment and average income are rising. I would never be as presumptuous as to say that it’s a perfect time to buy a house, but some people feel exactly that way.”

Smith would go on to say, “Ultimately, the onus is on the mortgage broker to help home buyers find the right mortgage they can within the parameters of the market. We have developed a lot of contacts, and we are dedicated to finding reasonable home loans for as many people as we can by putting them with the company that is right for them. We have a lot of experience with matching up the right banks with the right buyers, whatever the market may dictate.”

The Mortgage Gallery Rockingham is a mortgage broking firm which provides service mainly in the Rockingham, Cockburn, and Kwinana areas. In the current market, as in any market, they rely on cutting-edge information and a tireless staff to help prospective home buyers find appropriate financing.

For a consultation or for more information, please call The Mortgage Gallery Rockingham at (08) 9527 1800, or visit their website here: http://www.themortgagegalleryrockingham.com.au/

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