New home sales steady
New homes sales picked up a little in January on a seasonally adjusted basis, according to the Housing Industry Association, but remained well below the levels seen through much of last year.
In fact, despite the obvious shortage of housing, sales are running at about ⅔ of the levels seen during the pandemic stimulus.
Dwelling starts and completions are running at between 40,000 and 45,000 per quarter, well below the 60,000 or so required to meet the government's stated target of 1.2 million well-located new homes over 5 years.
Construction should begin to pick up from here with interest rates no longer rising and construction costs levelling off, but still it appears likely that the numbers will fall 20 to 25 per cent below the target.
Further compounding the challenges,
according to ABC News new developments are sometimes being delivered on the outskirts of the cities, but without the required schools, transport links, medical centres, shops, and other amenities, seriously challenging liveability in the newly-constructed housing estates.
In other news consumer confidence got a bit of a boost this month, with consumer inflation expectations seemingly commensurate with inflation hitting - and remaining within - the target band.
Source: ANZ
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