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The ABS released the Lending to Households and Businesses data for July 2022 today. The data provides sobering statistics on housing finance commitments.
“The rise in the cost of borrowing is compounding the impact of the rapid increase in the cost of building a new home that occurred due to the constraints on global supply chains,” added Mr Devitt.
“Declines were seen across all segments of the market, led by investors.
“The value of loans to investors fell by 11.2 per cent to their weakest month in over a year. This was followed by a 9.5 per cent decline for first home buyers, to their lowest level in over two years, and a 6.3 per cent decline for other owner occupiers. There was also a 3.3 per cent decline in lending for renovations.
“These declines in home lending are consistent with other leading indicators.
“New home sales across Australia declined by 13.1 per cent in July, following even earlier reports from the industry of a slowing in the number of groups visiting display sites. This will see weaker sales volumes in the second half of 2022.
“If these trends are sustained, which is expected, then the 1.75 per cent increase in the cash rate so far will have brought this pandemic building boom to an end.
“There remains a significant volume of work under construction and approved-but-not-yet-commenced that will provide a buffer for the industry and ensure building activity and demand for skilled trades remains exceptionally strong through the rest of 2022 and into 2023.
“There is a risk that this volume of ongoing work will obscure the adverse impact of rising interest rates,” concluded Mr Devitt.
Following on from the discovery of traces of bonded asbestos in garden mulch that has been distributed in Sydney, samples tested in Canberra by WorkSafe ACT have also proved positive for the substance.
On 20 January 2024 HIA made a submission to the Tasmanian Government on the Future of Local Government Final Report.
“The Housing Industry Association (HIA) is concerned about the impact the Federal Government’s fuel emissions standards will have on the cost of doing business for tradies,” said Simon Croft, HIA Chief Executive – Industry & Policy.
On 19 January 2024 HIA made a submission to the Tasmanian Government on proposed amendments to the Director's Determinations on bushfire hazard areas.