Housing Recovery

Close to 66000 people gained approval for a housing loan in the month of April. It is a 2,2 per cent rise and the fifth straight month of growth. "There has been quite an acceleration in housing finance commitments over the course of the past few months, which points to housing activity contributing to already strong economic growth," said Mr Stephen Roberts a research director for Grange Securities. However other data shows that housing affordability has hit 23 year low. And the monthly loan repayment on a typical first home mortgage rose to $2387 from $2352. The Housing Industry Association is calling for an inquiry into new housing costs and increasing tax burden on new home buyers. As an example in Sydney, almost $125,000 in indirect taxes is paid on a typical new house and land package.