New building recovery at risk

New building recovery at risk

13 January 2011 by Staff Reporter 0 comments

Staff Reporter

Yesterday’s housing finance figures revealed an encouraging pick up in loans for new housing construction but the tenuous recovery remains at risk according to Master Builders Australia.

The number of loans for new housing construction rose by 2.7 per cent in November 2010, seasonally adjusted, Australian Bureau of Statistics figures showed.

“A solid increase in headline finance commitments in November confirms that the decline suffered in 2009-10 has been arrested, with finance related to new dwellings also on the improve,” commented Peter Jones, chief economist of the MBA.

“However, finance commitments remain at a low level and with the full impact of the latest rate rises hanging over it a fully-fledged recovery in residential building remains at risk.”

According to Mr Jones, the “interest rate senstitive” residential building industry remains in danger of becoming collateral damage as a result of “heavy handed” monetary policy.

“The weak underlying level of housing finance must be of concern to the federal government, as it prevents the residential building industry from meeting an undersupply of housing thereby risking higher rents and house prices as more people chase less stock.”

 

 

Staff Reporter

Yesterday’s housing finance figures revealed an encouraging pick up in loans for new housing construction but the tenuous recovery remains at risk according to Master Builders Australia.

The number of loans for new housing construction rose by 2.7 per cent in November 2010, seasonally adjusted, Australian Bureau of Statistics figures showed.

“A solid increase in headline finance commitments in November confirms that the decline suffered in 2009-10 has been arrested, with finance related to new dwellings also on the improve,” commented Peter Jones, chief economist of the MBA.

“However, finance commitments remain at a low level and with the full impact of the latest rate rises hanging over it a fully-fledged recovery in residential building remains at risk.”

According to Mr Jones, the “interest rate senstitive” residential building industry remains in danger of becoming collateral damage as a result of “heavy handed” monetary policy.

“The weak underlying level of housing finance must be of concern to the federal government, as it prevents the residential building industry from meeting an undersupply of housing thereby risking higher rents and house prices as more people chase less stock.”

 

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, 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
At the top of his game: how this agent evolves to stay number one

Get up close and personal with the best real estate sales agents in Australia in Secrets of the Top 100 Agents. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?