WA industry snapshot june
Monthly snapshot of Western Australia housing construction - June 2013
June has been a fantastic month for construction in Western Australia, with a large number of generated building leads and completed homes indicating a returning confidence to the market.
After a slow start to the month, building starts reached a high of 173 in the final week of June, with the week before peaking at 160.
There were over 700 client leads generated each week this month - with the highest being the week ending June 23, where there were 830 leads secured. The first and last week of the month were highlighted by huge net sales - each one peaking at over 450 confirmed sales.
The overall trend of increased home building and construction starts can be attributed to an overall returning of confidence to the real estate market Australia-wide.
The Reserve Bank of Australia's decision to keep the cash rate at the historically low 2.75 per cent earlier in the month has influenced the uptake of home financing options.
Interest rates have slowly been dropping in reaction to the cash rate, with more people taking out financial housing commitments than earlier in the year.
"June has been a great month for housing construction in Western Australia, in part due to the Reserve Bank's decision to reduce the cash rate," said General Manager Mark Peers.
"This has inspired market confidence, helped to raise the strength of the market as a whole, and hopefully indicates a growing, sustainable trend towards a strong spring for property."
Source: Housing Industry Association Quarterly Presentation June 2013.