Aveling Homes on Why Property Is Still Driving the Economy | Aveling Homes

Perth, WA - Although the Australian property market is seen to be cooling off, new figures suggest that housing is still driving the economy.

Home loan approvals were expected to fall up to 0.5 per cent in May. Instead, the Australian Bureau of Statistics came out with a number of figures last week that show the number of home loans remained steady.

These figures that indicate the property market is simply taking a break.

Growth has been strong for the past year, and economists including ANZ head of Australian economics Justin Fabo suggested that it is common for the property market to cool briefly after a growth year.

Auction clearance rates and approvals still remain at high levels.

Home Loans

Instead of dropping in May, home loans remained steady. They lifted from their record lows back in April. The values of the loans fell slightly, but economist Ben Jarman from JP Morgan suggested that this is because of the temporary dip in housing prices in May.

With home loans at a steady approval rating and value, it is a valuable time for first home buyers to make their home purchases.

The New Mining Boon

Housing has been a strong market in Australia ever since the dwindling down of the mining boon. Once mining was the biggest driver of growth in the Australian economy, but now housing is seen as the main growth driver. Both foreign investors and domestic investors have demonstrated how Australian property is supporting employment.

In addition to creating jobs through the construction, real estate, and home mortgage sectors, Australian property is also driving retail. As first time home owners buy or build new homes, they require an ample amount of furniture for their new space. As a result, they are making plenty of purchases in the retail sector, including all types of furniture and floor coverings.

About Aveling Homes

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Visit the Aveling Homes website at http://avelinghomes.com.au for more details about our services and available financing options for first time home buyers.

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