2013 New Housing Boom for Australia
While new home building approvals only increased slightly in November of last year, lower interest rates, the trend towards apartment living and a growing population rate all indicate 2013 will see a full recovery.
The RBA is relying on a recovery in Australia’s building industry to lower the impact of an expect slowing of Australia’s mining sector later in 2013.
The housing industry is worth about $68 billion to Australia annually. It is only about 5% of economic output but the spikes and cliffs of the market result in disproportionate economic impact.
Considering Australia’s population is growing at around 1.6% per year, flat housing prices and low interest rates indicate an increase in new home sales for 2013.