Housing in 2012: starting from a weak point and deteriorating further

by Chris Lang on April 19, 2012

Housing in 2012

I’ve just received the 2 latest press releases from the HIA (Housing Industry Association), and, combined, they draw an interesting picture:

The ABS figures released on 18 April confirm that December 2011 quarter was very weak for new houses and major renovations / alterations. This means that the activity in those areas declined by 1.8%. New residential building work also fell by 1.7 percent in the same quarter, and even the value of renovations and alterations fell.

Dr. Harley Dale, HIA Chief Economist, predicts that things will get worse in March and June quarters of 2012, saying “Evidence over 2012 to date confirms further weakness this year.”

The Residential Land Report, prepared by the HIA and RP Data, showed that land sales are slowing down continuously. Now the land sales are 40% lower than 5 quarters ago.

This means that new home building recovery is not recovering yet, and is not likely to begin an upward trend any time soon, unless something changes in the current economical climate.

RP Data’s research director Tim Lawless believes conditions in the vacant land market are the weakest in more than a decade.

Some more interesting data pin-pointed the regions with the most expensive and cheapest median lot prices – see below:

Most expensive land prices

Least expensive land prices

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