Positive Signs for Housing Recovery

A recent meeting of the Reserve Bank of Australia (RBA) board has revealed conditions in the housing market are continuing to strengthen. In minutes released by the RBA it was noted that nationally, dwelling prices were above their late 2010 peak.

Furthermore the board stated “housing turnover and loan approvals had picked up noticeably”.

The RBA says improved conditions in the established housing market were providing an impetus to dwelling investment, with residential building approvals increasing over the year.

“Approvals increased notably in September, driven by a pick-up in high-density approvals, which tend to be quite volatile from one month to the next,” according to the board.

In addition, the RBA felt developments in the established housing market and the increase in new dwelling activity seen to date were among the expected effects of the low level of interest rates.