Double dip for new home starts
The sale of new houses and units fell by five percent Australiawide in July. This follows a 22 percent drop in June.
The Housing Industry Association (HIA) says that figures confirm reports from many builders who are seeing a drop off in enquiry levels and display home traffic.
However, Ruth Morschel, the HIA’s director of Public Affairs and Policy, says despite the fall, builders are reporting that activity is back to a more sustainable level and there is still a considerable amount of work in the pipeline.
“In terms of activity on the ground, most agree that the demand for labour and materials will hold up throughout the rest of this year, but many are adjusting their expectations to lower, more steady levels of activity into next year,” she says. “In the meantime, the new housing market and the home renovation industry continue to be a positive force for the economy, aided by relatively low interest rates, strong levels of industry employment and high consumer and business confidence.”
An estimated 9873 dwellings were sold in July, 560 less than in June. The fall was consistent across all states with the largest falls recorded in New South Wales and South Australia.
Source: Building Products News
20-Aug-2002