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“Lending for new homes is down by 62.4 per cent since its peak in January 2021, to its lowest level since November 2012,” added Mr Reardon.
“Sales of new homes have stalled in recent months as market confidence declines.
“This poor data is as a consequence of the fastest increase in the cash rate in a generation. Despite this, the impact of last year’s rate increases won’t be fully apparent until late this year.
“The decision by the RBA to increase rates further in 2023, will further erode market confidence and accelerate the downturn that is already evident.
“There are significant lags between a change in the cash rate and its impact on the economy. In this cycle, it will take up to 18 months before the impact of the May 2022 rate increase fully flows through to employment in the sector.
“The supply chain disruptions of the pandemic are easing. Inflation in other economies is slowing and interest rates are not the only tool at governments’ disposal to address the inflationary problem,” concluded Mr Reardon.
The Housing Industry Association has today called for urgent governance reform of Tasmania's construction industry long service scheme, TasBuild, saying a compulsory levy on every Tasmanian builder is administered under governance and accountability arrangements fall short of contemporary standards.
The Housing Industry Association, Master Builders Australia, the Property Council of Australia, and the Real Estate Institute of Australia have released updated independent modelling of the Federal Budget housing package.
The Housing Industry Association has welcomed the release of the Bruce Precinct Master Plan. The Plan is an exciting vision for the future of one of Canberra’s long neglected precincts.
Jocelyn Martin, HIA Managing Director was a guest on Sunrise discussing construction insolvencies, Bathla Group, warranty insurance and investor confidence with host Natalie Barr.