New Housing Outlook Remains Soft
10 December 2012
The October 2012 Housing Finance figures released today by the Australia Bureau of Statistics continue to reflect the soft conditions experienced in the residention building industry.
New Housing Outlook Remains Soft
The October 2012 Housing Finance figures released today by the Australian Bureau of Statistics continue to reflect the soft conditions experienced in the residential building industry.
The total number of owner occupied housing finance commitments marginally rose by just 0.1 per cent (seasonally adjusted). Commitments for the construction of new dwellings, the more critical forward indicator, fell 0.3 per cent, while commitments for the purchase of new dwellings rose 4.2 per cent (seasonally adjusted).
Chief Executive Officer of Master Builders Australia, Wilhelm Harnisch, said the poor housing finance figures justify the Reserve Bank’s decision to cut interest rates further.
“The building industry is anxiously looking to the October and December 2012 interest rate reductions to help lift new housing demand from the doldrums. However, signs of a housing revival will not be evident until the first quarter 2013.
“The positive from the October figures is the 4.2 per cent rise in commitments for the purchase of new dwellings. This represents off the plan sales and sales from a build-up of unsold new housing stock in response to the various state based incentives to attract more new buyers into the market.
“The increase in the number of first home buyers taking out housing loans was also an encouraging sign.
“However if conditions don’t substantially improve, then further rate cuts from the Reserve Bank should be an option for consideration next year,” Mr Harnisch said.
Statement by Mr Wilhelm Harnisch, Chief Executive Officer
