Pick up in housing finance, but recovery still at risk

Master Builders Australia News

Written by: Peter Jones, Chief Economist, 12 Jan 2011

There was an encouraging pick up in loans for new housing construction in November, but the tenuous recovery remains at risk from heavy handed interest rate policy, according to peak building and construction organisation Master Builders Australia.
Mr Peter Jones,Chief Economist, said, “Despite recent signs of improvement, the housing market continues to face a number of challenges including the impact of higher interest rates.”
He said, “A solid increase in headline finance commitments in November confirms that the decline suffered in 2009-10 has been arrested, with finance related to new dwellings also on the improve.”
“However, finance commitments remain at a low level and with the full impact  - see Builders Home Plans