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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 proliferation of building standards in Council planning controls needs to stop now,” said Brad Armitage HIA Executive Director NSW.
“It is pleasing to see that should the Tasmanian Liberal Government be re-elected it is committed to planning reform and streamlining approvals that can deliver tangible and improved planning outcomes to get Tasmanians in homes faster,” said HIA Executive Director Tasmania Stuart Collins.
In line with this, HIA notes that the Sydney Water Price Proposal 2025-30 (SW proposal), highlights the critical relationship between the provision of water related infrastructure and housing delivery, and has set its capital expenditure proposal accordingly.
“Planning reform is a major part of solving the nation’s housing crisis and all state and territory governments need to implement major reforms now, to stem the tide of unaffordable housing.