Thursday May 7, 2009

Home building recovery underway but still shaky despite the First Home Buyer Boost Scheme

Interest rate cuts and the First Home Buyer Boost Scheme are contributing to a rebound in housing demand, according to leading industry analyst and economic forecaster, BIS Shrapnel. The company is forecasting a 10 per cent rise in dwelling approvals during the June quarter of 2009, as many upgraders who have sold their older properties to first home buyers elect to buy a new house.
 
This is on the back of the increase in national dwelling approvals of seven per cent, in seasonally adjusted terms, seen over the three months to March 2009. BIS Shrapnel senior economist, Jason Anderson, expects there will be a sustained expansion in demand for new dwellings in 2009/10, even if grants for first home buyers are scaled back.

Contact: Jason Anderson