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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 (HIA) held yesterday an Outlook Breakfast in Newcastle to provide industry with the latest economic data, discuss HIA’s forecasts and share key insights in the residential construction sector.
“National Asbestos Awareness Week provides an important reminder as we head into end of year, when people may be looking to undertake renovation or DIY work on older properties and the need to be vigilant in managing safety on site,” Jocelyn Martin, HIA Managing Director, said today.
The Housing Industry Association (HIA) welcomes the announcement that Round 3 of the Housing Australia Future Fund (HAFF) facility will open early next year, expanding the pipeline of social and affordable housing projects, HIA Managing Director Jocelyn Martin said today.
The Bureau of Meteorology has officially forecast Tropical Cyclone Fina to reach Category 3 intensity. There is a Cyclone warning currently in place for Top End coastal communities, including Darwin. Strong gale winds and rain are expected, as well as storm surge or tides.