Monday, July 12, 2010
Credit Squeeze Comes down hard on New Housing
The voice of Australia's residential building industry - The Housing Industry Association - indicates the tightening finance restrictions and the impact of rising interest rates has lead to the 7th consecutive slide in new home loans, from the May 2010 figures just in. Construction loans fell by 2.2 % in May, and loans for new housing are now 20% lower than just a short six months ago.
The disastrous news continues , with the March to May period down 26 some odd percent. First home buyers have largely abandoned the market as well, being down 56 % compared to the same period last year. The figures are pretty much the same for all the states, so it would appear that it's not a regional problem.
Our own figures from enquiry levels are good, but we note the market is somewhat patchy with irregular enquiry, with huge peaks and troughs. We look forward to and early election, so we can all get on with the spring selling season !