UDIA National welcomes the RBA’s decision to pause on interest rates, an urgently needed measure to allow the housing industry some breathing space as it copes with increasing headwinds.
“Many Australians are heading towards the so-called mortgage cliff in May 2023, which will see rates reset upwards for fixed-rate loan borrowers. This is expected to have substantial flow on impacts to the broader economy. A pause on interest rates will minimise the damage, and also provide industry with some much-needed stability after 10 consecutive rate rises,” said Max Shifman UDIA National President.
Between the looming mortgage cliff, declining new housing supply, planning delays, and cost and productivity challenges leading to increasing industry bankruptcies, the upward pressure on house prices is only growing.
“We need to fast track initiatives to bolster development ready land, and we also need to find a way to make projects viable, especially making it possible for buyers to access the market with the financial capacity to purchase new homes,” said Mr Shifman.
UDIA National is keen to work with Government, industry and the community to workshop measures that boost development ready supply as outlined in our policy report ‘Growing affordable and social housing’.
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Deanna Lane | National Media & Communications Manager | 0416 295 898 | media@udia.com.au