This is by far the longest period of time that commencements have exceeded completions. This has created an enormous pool of detached building work that will delay the adverse impact of the cash rate increase on unemployment and risks the RBA going too far and for too long.
Decline in new home sales accelerates
“Sales of new homes continue to decline sharply following the fastest increase in the cash rate in a generation,” stated HIA’s Chief Economist, Tim Reardon.
To read more: https://t.co/WcRbQ5pv9m
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Lending for the purchase or construction of a new home has fallen to its lowest level since April 2019.
This data is going to get allot worse as the full impact of rate rises to date wont flow through to finance until the second half of 2023.
Interest rates continues to weigh on new home sales
“New home sales declined by 15.7 per cent in the three months to September, compared to the previous quarter,” stated HIA Chief Economist Tim Reardon.
https://t.co/jsQaGq3GYW
Lending to build a new home continues to slow.
The RBA’s tightening cycle has pushed down the total value of housing loans by a further 3.4 per cent in August.
Read more: https://t.co/ic8rGbaaBV