Australia’s housing market begins to improve, as consumer confidence recovers. According to AV Jennings, a residential property development company, with an increase of at least 46 per cent in new lot contract signings, the country’s housing market is starting to recover. The company, however, also said sales growth is coming off a low base.
At the company’s annual general meeting, Peter Summers, the managing director of AV Jennings, said they’re looking forward to the current year with a more positive outlook for the housing market. This is while remaining careful in their response to market condition improvements, and taking heed of AVJennings reviews from consumers.
Based on AV Jennings reviews, Summers said consumer confidence is also starting to recover. Consumer confidence was the missing ingredient in the housing market that caused it to weaken in recent years. Now, this key factor is finally starting to emerge.
Summers also sees affordability continuing to improve, as household incomes remain ahead of house price growths.
With the increase of successful new contracts, the start of the Australian 2013/2014 financial year has been promising for the housing market. Compared to the 215 contracts from July to October during the 2012/2013 financial year, the 479 contracts that came in this year have been helping the market recover.
According to Summers, these may not all contribute to revenues during this year, however, as revenues are often recognised upon settlement. Unfortunately, weather disturbances and other interruptions may affect the timing of settlements.
The increase in contract signings is still a good indicator of production sales performance for this year. Current low interest rates and benign economic conditions are also assessing the housing market’s current condition.
With the Australian housing market improving, the shares of residential property development companies are rising. For this reason, it wouldn’t be much of a surprise to hear from other companies next.