In news that may interest any prospective buyers considering their home loan options, the latest round of data from the Australian Bureau of Statistics (ABS) shows that the building approvals figures fell slightly towards the end of last year.
According to information from the ABS, the seasonally adjusted total for dwelling approvals in December 2012 fell by 4.4 per cent, following on from November’s increase of 3.4 per cent.
Approvals for private sector houses fell 3.3 per cent for the month, and the value of total buildings approved also fell by 1.9 per cent (continuing a pattern of decline which has been evident for the past three months).
Individually, New South Wales saw a drop in its building approvals by 1.3 per cent, in addition to Tasmania (-21.8 per cent) and Victoria (-12.3 per cent).
In contrast, Queensland actually saw an increase in its dwelling approvals figures (rising by 7.9 per cent) as well as South Australia (1.7 per cent) and Western Australia (1.3 per cent).
The results are a disappointing indicator of continued recovery in the new home building sector, according to Housing Industry Association chief economist Harley Dale.
“It is not possible to call a new home building recovery without evidence of a sustained improvement in this segment of the market,” Mr Dale said in a statement issued on February 4.
However, the subdued conditions may actually prove to work in home buyers’ favour.
“New home buyers are in a unique position to capitalise on the current soft conditions, combined with the reduction of mortgage repayments and many state based incentives when considering home ownership.”