People spend big on new homes: HIA

People spend big on new homes: HIA

by 0 comments

Belinda Luc

Buyers are spending larger amounts getting into the property market, with new housing expenditure rising 12.5 per cent in the June quarter of 2010.

According to the Housing Industry Association (HIA), this figure was 8.3 per cent higher than 12 months ago.

HIA senior economist Andrew Harvey said that the increased expenditure was the consequence of the government grants in 2009 for new homes.

However, he said the figure may plateau over the medium term.

"You need to remember that the housing contribution to June quarter Gross Domestic Product (GDP) reflects the lagged effects of good approvals and lending finance figures from the latter stages of 2009.

"This situation has changed, with leading indicators for housing activity now looking considerably less rosy," said Mr Harvey.

"Without the government stimulus of the first home buyers boost and the social housing initiative we have seen a sustained weakness in approvals and finance, signalling that new housing construction will at best be flat over the medium term," he said.

GDP grew by 1.2 per cent in the June quarter to be 3.3 per cent up on 12 months ago.

 

Belinda Luc

Buyers are spending larger amounts getting into the property market, with new housing expenditure rising 12.5 per cent in the June quarter of 2010.

According to the Housing Industry Association (HIA), this figure was 8.3 per cent higher than 12 months ago.

HIA senior economist Andrew Harvey said that the increased expenditure was the consequence of the government grants in 2009 for new homes.

However, he said the figure may plateau over the medium term.

"You need to remember that the housing contribution to June quarter Gross Domestic Product (GDP) reflects the lagged effects of good approvals and lending finance figures from the latter stages of 2009.

"This situation has changed, with leading indicators for housing activity now looking considerably less rosy," said Mr Harvey.

"Without the government stimulus of the first home buyers boost and the social housing initiative we have seen a sustained weakness in approvals and finance, signalling that new housing construction will at best be flat over the medium term," he said.

GDP grew by 1.2 per cent in the June quarter to be 3.3 per cent up on 12 months ago.

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
Marnie Seinor on structure, database DNA and connecting with her local community

There’s no such thing as an “off switch” in real estate – so says McGrath agent Marnie Seinor, who came in at number 78 in this year...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?