The HIA – Jeld-Wen New Home Sales Report released in late May, showed a ‘modest bounce’ in new home sales. The figures are based on a survey of Australia’s 100 largest builders.
However, according to the HIA’s Chief Economist, Dr Harley Dale, “Even withthis latest improvement, the aggregate volume of both new home sales and local government building approvals imply that in the absence of a sustained recovery, national new home building is heading to a recessionary level in 2012”.
The figure for Queensland is disappointing with a fall of 5.5%. This follows a fall of 15.3% in March in Queensland.
Dr Dale strongly believes that further interest rates are definitely required along with government initiatives to “reduce the sectors’ excessive tax burden and through an immediate injection of investment and funding”.
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