The NSW budget papers gave 10 key reasons for the sense of an underlying strength in the NSW housing sector.
- interest rates at historically low levels
- consumer confidence has seen improvement
- housing finance approvals are trending up
- building approvals are increasing
- vacancy rates are low and rents are on the up
- housing activity is improving prices have begun to increase
- housing affordability improved steadily over the 2012-13 period
- rising investor demand
- high auction clearance rates
- and underlying demand remains strong driven by demographic trends, including higher population growth and solid household income growth.