Rate cuts encourage new home building

Australian Bureau of Statistics data shows home building approvals increased by 2.9% in November, up 13.2% on the same month of 2011. All gains came in the multi-unit sector, which climbed 10% in November and over 36% for the year.

After a series of rate cuts last year, mortgage rates are now well below long-run averages. Combined with flat home prices and rising incomes, that has made property more affordable.

The Housing Industry Association also reports sales of new homes rose 4.7% in November, for a second straight month of gains.

Source: Broker News

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