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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.
Lending for Purchase and Construction of a New Home
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Preventing Pipe Failure Starts Below Ground
The HIA has been advised that due to an increase of plumbing audit inspection failures, from the 1st of September, the Office of the Technical Regulator (OTR) will be further policing non-compliance in the installation of sanitary plumbing and drainage pipework, namely the bedding of sanitary drainage pipes.
Senate Inquiry must focus on delivering more housing, not more reports
The Housing Industry Association (HIA) has welcomed the establishment of the Senate Economics References Committee Inquiry into social housing, describing it as an important opportunity to identify the reforms needed to deliver more housing of all forms at scale and address the bottlenecks holding back housing supply broadly.
New home sales decline for the third consecutive month
“Sales of new homes declined for a third consecutive month in July, falling by 3.7 per cent as higher interest rates and policy uncertainty continued to weigh on consumer confidence,” stated HIA Senior Economist, Tom Devitt.
National Skills Week: Showcasing diverse education pathways
HIA is proudly supporting National Skills Week this year by highlighting the construction industry’s many and diverse career opportunities.