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{{propApi.successMessage}} {{region}} Change locationRate increase risks unnecessary slowdown
Rate increase risks unnecessary slowdown
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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.
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Housing industry's best set to shine at Parliament House
The region's finest in residential building and renovation will be recognised tomorrow night as the 2026 HIA-CSR ACT and Southern NSW Housing, Kitchen & Bathroom Awards are held at Parliament House in Canberra.
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Planning reforms welcome step forward for housing supply
The Housing Industry Association (HIA) has welcomed the passage of the ACT Government’s latest planning legislation, saying the reforms will help reduce delays, streamline approvals and support the delivery of more homes across Canberra.