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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 welcomes today’s announcement by the Planning Minister for a statewide Community Participation Plan,” declared Brad Armitage, Executive Director NSW.
The surge of close to 10 million Australians now living in regional areas has exposed deep and growing cracks in the nation’s housing system, highlighting the urgent need for a dedicated national housing plan that works for regional Australia, according to Housing Industry Association (HIA) Chief Executive – Industry Policy, Simon Croft.
As we head into the Easter break this year, it is deeply unfortunate that I am writing to you as our industry faces yet another challenging and uncertain time with significant business disruption being faced arising from the conflict in the Middle East.
With Easter coming up it is time for an update on fuel price related cost increases, the proposed minimum financial requirements, and also some enforcement activity by WorkSafe.