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“Loans for the purchase and construction of a new home fell in January to the weakest month since November 2008. This is before the full impact of rate increases in 2022 hit the market, let alone the February 2023 increase.
“There are significant lags evident in this cycle and the full impact of higher cash rates will not be fully reflected in economic indicators until the second half of the year, at the earliest.
“The higher cash rate is compounding the adverse impact of the rising cost of materials, labour and land as well as the increased costs of compliance due to changes to the building code.
“There remains a large volume of work underway that will be completed in 2023 which is obscuring the adverse impact of rate rises on other indicators such as unemployment and economic growth.
“By continuing to raise rates the RBA will inflict further unnecessary pain on the $120 bn housing sector and related industries,” concluded Mr Reardon.
The Housing Industry Association (HIA) is calling on the Victorian Government to withdraw proposed legislation that will expose home builders to fines over $10,000 if they fail to get the right paperwork to their client before conducting extra building work the client has asked them to do.
CBOS has recently briefed HIA on a proposed new ‘Prescribed CPD Model’ for the industry starting with plumbers, electricians and gasfitters in Tasmania.
Today the Tasmanian Government announced a Modular Housing Finance Guarantee aimed at improving access to finance for modular and prefabricated homes.
HIA’s response to the Proposed Changes to the Road Transport Contractual Chain Supply Order on fuel recovery costs.