The Real Estate Institute of Australia (REIA) continues to urge calm in the wake of successive cash-rate hikes.
REIA President Hayden Groves suggested this week that while the rate rises might be causing pain for some, they have no doubt been a contributing factor in stabilising Australia’s record growth in house prices.
“The latest rise of 0.5% will certainly affect the housing market, however other factors such as consumer sentiment due to uncertainty about inflation, access to building supplies and labour, along with worries about wage growth are also impacting the current economic climate”, he said.
“Key concerns for the housing industry at the moment are the continued reports of builders going into liquidation as this hinders the future pipeline for homes for both sale and rent which will impact on supply, and in turn, affordability.”
Groves said Australians still want to own their own home and have access to affordable housing – this will remain a priority and needs to be dealt with a sense of urgency by governments.
“The latest Australian Bureau of Statistic lending figures demonstrate this priority, with the value of new housing loan and investment loan commitments rising over May 2022”, he said.
“First time buyers remained 6.9% higher than February 2020 levels before the onset of COVID-19.”
The situation highlights the urgent need for a national plan that addresses housing affordability and supply, supported by both federal and state governments, Groves concluded.
