New homes sti­fled

The Coffs Coast Advocate - - SCHOOL OF THE WEEK -

NEW home builds could be slown by tight credit ap­provals, ac­cord­ing to Hous­ing In­dus­try Aus­tralia. The HIA New Home Sales re­port – a monthly sur­vey of the largest vol­ume of home builders in the five largest states – pro­vides an early in­di­ca­tion of trends in the res­i­den­tial build­ing in­dus­try. New home builds in NSW are down 4.9 per cent on the 2017 fig­ures. HIA act­ing prin­ci­pal economist Ge­or­dan Mur­ray said in the new home mar­ket the HIA was see­ing fewer new builds go­ing ahead. “When APRA im­posed tighter rules on mort­gage lenders at the height of the cy­cle they were aim­ing to head off any growth in risky lend­ing be­fore it be­came a prob­lem,” he said. “To that ex­tent, the added over­sight has done its job but the tighter lend­ing en­vi­ron­ment is now sti­fling res­i­den­tial build­ing ac­tiv­ity. “With the Hayne Royal Com­mis­sion sched­uled to re­lease its find­ings early next year there is a risk that there will be fur­ther dis­rup­tion to the lend­ing en­vi­ron­ment in 2019.”

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