Housing Industry warns Interest Cut

The September quarter figures showed that housing starts fell. Experts have warned that despite of the two consecutive interest cuts this year, construction industry may not see any recovery until late next year. South Australian builders Candetti Constructions was also confirmed that the warning comes as the construction industry continues to suffer.

According to Housing Industry association economist Andrew Harvey, “The data showed a 12.1% annual decline in the number of new house built in the September quarter should be taken in context with the most recent rate cuts.” Mr. Harvey expects and hoping that recovery may be a long way off closer to the end of the next year. Economists also expecting another rate cut in February. Anyhow, the situation comes as the industry continues to suffer the highest insolvency appointments out of any other sector and the Government should focus on this scenario and might focus first the mining sector in which we all know that mining is the saviour of the economy. Housing Industry advocate are calling for external assistance to get the industry moving as they believe that Home Building is essential to having the economy growing again.