‘Wider economy’ at risk as construction loans hit 15-year low

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 45 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 90%

Property Property Headlines News

Property Property Latest News,Property Property Headlines

Weak level of new housing completions in 2024, 2025 and 2026 will reverberate through the country’s economy and communities, economists warn.

Loans for the construction of new homes sank in January to their lowest level since the global financial crisis, as builders try to stimulate a housing market that is still busy but which is heading closer to a slump each day.

“This means at least another 12 to 18 months of construction activity before this pipeline is depleted.”Conditions vary across the country’s different housing markets, but all agree that the recent frantic phase has passed. Builders in NSW at least are reporting that the trades are starting to contact the builders to say ‘Do you have any work?’“Land developers who we have a relationship with are also highlighting that land sales are down,” Mr Lavering said.

“That’s pushing sales down into our end of the market whereas the top end of the market is disappearing.”to their lowest monthly total since June 2012. The increasing likelihood that the Reserve Bank’s benchmark rate would rise above 4 per cent would also push more home owners into a state of mortgage stress, the point at which a household is spending 30 per cent or more of its income on servicing a home loan.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Results of all the free handouts and super withdrawals during Covid Morrison Government was in the box seat Labour need to fix this otherwise multiple builders will go under

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in PROPERTY

Property Property Latest News, Property Property Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘Wider economy’ at risk as construction loans hit 15-year lowWeak level of new housing completions in 2024, 2025 and 2026 will reverberate through the country’s economy and communities, economists warn.
Source: FinancialReview - 🏆 2. / 90 Read more »