 Home improvements keep building industry alive
The buying of new homes may be a slowing market, but that does offer some good news for the building industry. As people grow wary following a period of high interest rates, high petrol costs and falling house prices, many are deciding to renovate their exisiting home, rather than move or buy another property. 
The trend is set to continue, with many home owners choosing to direct funds towards home renovations rather then selling and moving.
Housing Industry Sunshine Coast/Wide Bay branch
manager Adrian Langford said the value of approvals for alterations and
additions on the Sunshine Coast was worth $119 million in 2007-08 – up
1% on 2006-07.
Mr Langford says this small increase is impressive when you consider the high interest rates and costs of living during the last financial year.
According to the Housing
Industry Association, if the value of the land is high, the more likelihood there was that owners would decide to make renovations rather than sell. The costs that come with buying and or selling are instead being directed towards the existing properties.
Interest rates were cut in three successive months by the Reserve Bank of Australia, and home loan rates are falling in response. Mr Langford comments that the renovations sector is usually very responsive to lower interest rates but new home building takes longer to see the effects.
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