2015 Perth housing industry outlook
As the year draws to an end, the construction industry looks to 2015 for signs of how home building will fare in the new year. While no one can ever predict the future, there are certainly some good indicators of how the industry will kick off the next year of activity.
The sale of new houses is an obvious clue as to the demand for new home building, and according to the Housing Industry Association (HIA), we are tracking for a good start.
"We now want to be seeing evidence pointing to a healthy prognosis for new home building activity in 2015. In this regard we have positive signals coming from three key leading indicators. HIA new home sales and Australian Bureau of Statistics building approvals are past their peaks but remain at elevated levels. Lending for new housing is still trending higher and doesn't appear to have peaked yet," said Harley Dale, chief economist for the HIA in a November 27 release.
While demand for housing from those involved in the resource sector has waned in Perth, new home buyers seem to have filled this spot.
The Real Estate Institute of Australia (REIA) noted that increasing affordability in the real estate market is encouraging first home buyers to enter the market, especially in Western Australia. Amanda Lynch, CEO of the REIA, pointed out that first-time home buyers make up 20.7 per cent of WA's owner-occupied market. Western Australia also accounted for a quarter of the nation's first time purchases in the September quarter.
The HIA Housing Scorecard, released on December 8 showed that WA is still the nation's number one home building market. The Northern Territory, the next highest ranked on the scale, had a score that was just over 10 per cent lower than WA.
With these positive indicators hinting at a strong year for residential construction ahead, it really will be a merry Christmas for new-home builders and purchasers alike.