The HIA National Outlook signals a recovery for the housing industry over 2009/10.
Commenting on the release of the March 2009 quarter HIA National Outlook publication, HIA chief economist, Harley Dale, said that substantial fiscal stimulus and large interest rate reductions will see new home building result in a recovery from mid 2009.
The number of housing starts is forecast to fall by 17 per cent in 2008/09 to a level of 132,000 before growing by 11 per cent over the subsequent two years.
"Given the outlook for a modest rather than significant recovery in new home building, the shortfall between dwelling completions and underlying demand will exceed 50,000 dwellings per annum for some years to come," says Dale.
The renovations sector, which accounts for 47 per cent in every dollar spent in the housing industry, is holding up well.
"Following a steady 2008/09 we are forecasting an increase in total renovations investment of 6 per cent over 2009/10 - 2010/11. Renovations activity hit a record worth of nearly $3 billion in 2007/08 and our forecast is for the value to be well on the way to $33 billion in 2010/11," says Dale.
