2012 will be a low point for residential building, says HIA

The Housing Industry Association (HIA) believes the second half of 2012 will be a low point for residential building in Australia.

Preliminary figures released by the Australian Bureau of Statistics have indicated that house construction activity increased modestly in the September quarter of 2012 – rising by 0.6 per cent and ending a run of five consecutive quarters of decline.

Although the HIA welcomed the slight upturn, it insisted there is still a very long way to go before the property sector is thriving again.

"Despite the quarterly improvement, September still looks like being one of the weakest quarterly results in the last decade, which highlights the length of the road back," said HIA economist Geordan Murray.

This is obviously bad news for mortgage customers who are desperately searching for a new home that falls within their price range.

It is not all bad news for house hunters, though, as a study conducted by the HIA and Commonwealth Bank recently showed that properties are generally becoming more affordable across the country.

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