Tuesday, July 31, 2012

Australia's New Home Market Goes Back Into Recession

There is persistent and widespread weakness in the home building industry in Australia, according to the latest Trades Report from the Housing Industry Association, the voice of Australia’s residential construction industry.

The HIA Trades Report, a survey of builders and sub-contractors, highlights a significant increase in the availability of skilled labor in the June 2012 quarter.

“A synchronized decline in new home building and renovations activity in 2012, which sees the former sector back in recession, is reflected in the highest availability of skilled labor reported since the HIA trades survey began in 2002," said HIA chief economist Harley Dale.

"Tens of thousands of trades people are feeling the pressure of persistently weak residential building activity, while the loss of skilled labor to the resources sector will intensify the longer recessionary conditions persist," he pointed out.

"Governments have a crucial role to play in delivering investment and reform to boost housing activity. Furthermore, now is the time, during cyclical weakness, for policy makers to accelerate reform and investment in skills and training to avoid labor re-emerging as a constraint on a future housing recovery," he added.

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