Lack of home sales 'might be a positive' for builders in Victoria
Victorians who have been saving their money for a property purchase or to build a new home may be encouraged by a recent statement from the Housing Industry Association (HIA).
HIA chief economist Dr Harley Dale noted the sluggish home sales in the state for the beginning of 2012 but was hopeful for those wanting to build.
He said: "There is an upside given the current weak new home building environment. Now is a very good time to be building a new home for those who are financially set to take such a decision."
A report from HIA-JELD-WEN New Home Sales indicated a 7.3 per cent drop in total seasonally adjusted new home sales in Australia for January 2012.
Based on a survey of Australia's 100 largest builders, the results indicated "a sharp decline of 19.6 per cent in detached house sales in Victoria", which affected the overall number.
Dr Dale was concerned, noting homebuilding is a key indicator of a healthy economy and suggested the figure "further highlights the inappropriateness of the rise in interest rates" that occurred last month.
He hopes for more effective policies to come from the government so that recovery can take place.