Tuesday, June 05, 2007

Builders predict recovery in new housing market

The Master Builders Association says there is room for cautious optimism that the long period of housing weakness in Australia may be coming to an end.

Australian Bureau of Statistics figures show building approvals have risen 8.1 per cent in April to a seasonally-adjusted 12,858, with private-sector free-standing housing approvals up 3.3 per cent.

The association's chief economist, Peter Jones, says if inflation and interest rates are kept in check, a recovery may begin to emerge towards the end of the year.

"Reduced interest rate speculation should enable a recovery to begin to gain traction later in the year," he said.

"This would be very good news, given that we are currently just not building enough relative to population and household formation needs."
Source: ABC

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.