Final figures from the Australian Bureau of Statistics have today confirmed that there was a significant housing slowdown in 2010.
New residential building work fell by 6.3 per cent in the September 2010 quarter, driven by a 9 per cent drop in detached house activity, while work done on major alterations and additions turned in a flat quarterly result.
HIA chief economist Harley Dale said a clear softening in housing activity was already underway prior to the negative impact that will flow from the rate hikes of November last year.
“The lagged impact of the significant interest rate hikes of November 2010 are yet to be felt by the housing industry and wider economy. Furthermore, there remains considerable uncertainty regarding the economic impact of the floods experienced in Queensland, and in parts of New South Wales, Victoria, and Tasmania,” Mr Dale said.
“Consequently any consideration of the need for further interest rate moves in approaching months is baseless.”
In the September 2010 quarter, seasonally adjusted new residential building work done fell by 0.9 per cent in New South Wales, 4.8 per cent in Victoria, 16.5 per cent in Queensland, 1 per cent in South Australia, and 1.8 per cent in Western Australia.
New residential work done was effectively flat in Tasmania and rose by 14.4 per cent in the Australian Capital Territory.