 Housing recovery soon
Industry insiders are predicting a recovery for the housing market later this year. The Housing Industry Association says that the middle of the year is the date to be looking towards.
HIA chief economist Harley Dale said in a statement that low interest rates have now been here for some time and are starting to take effect. The boost to the first home owner's grant has also been extended making recovery in the housing market more likely this year.
The HIA projects the total number of completed homes in Australia will rise from 129,500 in 2009 to 139,200 homes in 2010, based on quarterly assessments of key indicators sourced at state and national levels. "Given the outlook for a modest rather than significant recovery in new home building, the shortfall between dwelling completions and underlying demand will exceed 50,000 dwellings per annum for some years to come," Mr Dale said.
There were 141,000 completed homes before the onset of the global recession slowed construction and lending to the sector.
The crisis has slowed new building and construction significantly in the past year, however, the $21,000 available to first home owners has ignited some renewed hope in the building industry.
With rates also at a 49-year-low, housing has become more affordable for many Australians.
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