New housing market is unequivocally weak, HIA says
The Housing Industry Association (HIA) has warned the government that Australia's new property market is "unequivocally weak" at the moment.
Chief economist at the organisation Harley Dale said that the number of new building developments that are getting the green light has been falling every month since the middle of 2010.
House prices have remained stubbornly high down under, as there is a distinct lack of supply, which is putting a lot of people off taking out a mortgage.
Mr Dale believes the poor market conditions will have an impact on the wider economy unless action is taken to stimulate activity in the industry.
"Recent encouraging moves by some state governments notwithstanding, the continued deterioration in new housing supply is a poor indictment on Australia's policy makers," he remarked.
HIA statistics showed that dwelling commencements fell by 12.6 per cent across the nation in the March quarter of 2012, with New South Wales being the worst-affected part of Australia.
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