13% housing market recovery predicted for Australia

Posted on February 23, 2009 by peter 
Filed under Australia Real Estate News · Tagged:

The Housing Industry Association is forecasting a recovery in the housing market next financial year.

Its latest report on the outlook for the sector predicts new home construction to fall by 17 per cent this financial year.

But it forecasts a 13 per cent rebound in the next financial year.

The association’s chief economist Harley Dale says conditions in the market have been buoyed by the sharp fall in interest rates and the Government’s fiscal stimulus packages.

“Certainly at the moment the situation remains very weak, and unfortunately there’s no sign of that changing in the next couple of months,” he said.

“But with the amount of stimulus out there in the economy, there’s cause for optimism moving a little bit further forward.”

The Housing Industry Association says the shortage of homes should begin to narrow in the second half of this year, as the rate cuts and stimulus take effect.

Mr Dale says the rebound from July will help to reverse a substantial undersupply of houses.

“There I think is a lot of years of work ahead of us to completely bridge the gap,” he said.

“But if we can actually get the industry growing again over the next couple of years, then we will slowly be getting back towards the number of homes that we ideally need to be building each year.”

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