A further hike in borrowing costs from the Reserve Bank could further exacerbate the nation’s housing shortage, according to the Housing Industry Association (HIA).
The latest HIA - JELD-WEN New Home Sales Report, a survey of Australia’s major residential builders, showed that the number of new homes sold in April limped just 0.2 per cent higher than in March.
Detached house sales inched up by 0.4 per cent with increases recorded in New South Wales and Victoria.
Detached house sales fell in Queensland, South Australia, and Western Australia.
The sale of multi-units posted a third consecutive decline, falling by two per cent.
Harley Dale, HIA chief economist said the results confirmed weal new home building sector.
“The new home building industry is struggling under the weight of excessive taxation and regulation, a stalled housing supply reform process, and uncertainty over interest rates,” he said.
Over 2011 to date new detached house sales are running at a volume 22 per cent lower than the long term average, Mr Dale said, while new multi-unit sales are down by over half.
“That profile is an unfortunate indictment of the weak new home building conditions prevalent in 2011 amidst a growing housing shortage, but it’s nothing compared to what we’ll see if another rate hike bullet is fired,” he said.
In April 2011 the HIA – JELD-WEN New Home Sales Report found that detached new house sales increased by 7.8 per cent in New South Wales and 2.2 per cent in Victoria.
Sales fell by 1.5 per cent in Queensland and were down by 0.5 per cent in South Australia and 10.3 per cent in Western Australia.