Ensure you never miss an issue of the
real estate business bulletin
New housing outlook weak

New housing outlook weak

by Reporter 0 comments

Staff Reporter

A modest improvement in housing finance was not enough to shake off the deteriorating outlook for new home building.

According to the latest data from the Australian Bureau of Statistics, the number of loans for the construction of new homes was flat in October, while loans for the purchase of new homes increased by 9.4 per cent.

Lending for construction has now been trending down for 12 months and over the three months to October 2010 loans for construction/purchase of a new dwelling declined by 1.6 per cent to be 29 per cent lower when compared to the three months to October last year.

"There is a renewed weakening in new home building conditions underway. This situation was readily apparent before the interest rate hikes of early November, but these hikes have exerted a considerable negative impact on sentiment and activity in the housing industry," Housing Industry Association chief economist Harley Dale said.

"A period of interest rate stability, as indicated in the Reserve Bank statement, is certainly an appropriate stance and we hope the Board sticks by that message it has conveyed."

 

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
New housing outlook weak
lawyersweekly logo
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
Removing financial risk and increasing buyer interest

ListSure is a service that aims to take the financial risk out of selling a property. It achieves this by providing a unique finance and ins...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes
No
Perhaps - make me an offer
Do you have an industry update?