Buyer intentions regarding housing have hit a record high, new data says.
Releasing the latest edition of its Household Spending Intentions Series, the Commonwealth Bank says home buying intentions lifted again in December and now sit at record levels.
Spending intentions are also rising for entertainment and remain positive despite easing for education and health and fitness.
Intentions remain negative (but lifting), however, for spending on travel, retail and motor vehicles.
CBA Chief Economist Michael Blythe says the data confirms an upward trend in home buying intentions which took hold around the middle of the year.
He says the readings are an indication that the upturn in dwelling values over the second half of 2019 will continue into the first half of this year and that the downturn in residential construction will bottom out soon.
“Past cycles show that leading indicators like building approvals turn about three month after home buying intentions start to lift,” Blythe said.
“A bottoming in the construction cycle would remove a major growth drag on the economy, and also helps retailing.”