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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 Victorian Housing Industry Association (HIA) takes this opportunity to make a submission ahead of the 2026-27 State Budget.
“Access to skilled labour deteriorated further, across almost all regions and all trades, as the number of homes under construction grew in the March quarter this year,” stated HIA Senior Economist Tom Devitt.
Industry was recently advised that a preview of NCC 2025 was published, and will be available for adoption from 1 May 2026.
Saturday 25 April is Anzac Day and is an observed public holiday. In addition, Monday 27 April has also been gazetted as a public holiday in NSW and the ACT this year.