The Real Estate Institute of Australia says the government has failed to introduce any new initiatives to address housing affordability in this year’s federal budget. Chief executive Amanda Lynch says the government has passed all responsibility onto the Reserve Bank. Ms Lynch says the good news is the budget retains conditions where further rate cuts are possible, but it remains to be seen if the banks will pass the savings onto borrowers. The government says returning the budget to surplus gives the Reserve Bank flexibility to cut interest rates further.
The Housing Industry Association also seems less than impressed. Its senior economist Andrew Harvey says the budget contains nothing to address the ongoing weakness in residential building, the housing shortage and poor affordability.
And finally, the Australian Bureau of Statistics reports the seasonally adjusted estimate for total dwellings approved rose 7.4 per cent in March, following a fall of 8.8 per cent in February. Despite the improvement, approvals are 15 per cent lower than they were the same time last year. The seasonally adjusted estimate for private sector houses rose 3.9 per cent in March, following a fall of 4 per cent.
