Jobs will determine how well the housing sector rides out the financial turmoil, according to Housing Industry of Australia.
Falling interest rates and increased grants have helped boost interest in buying a new home but fear of losing their job has kept many buyers waiting in the wings.
Melissa Ketchell’s Public Property blogMr Dale told 400 housing industry representatives at St Lucia yesterday that the fortunes of the housing industry over the next six to 12 months would largely determine the fate of the economy. He said that while unemployment was set to rise, if it peaked at about 6 per cent the housing industry should still grow.
And he said it appeared that many big companies were in good shape to hold on to their employees during the difficult times ahead, rather than having to resort to widespread job shedding.
“We are seeing more hours being cut back, people encouraged to take leave during quiet times instead,” Mr Dale said.
He said job security fears were stopping many would-be buyers from committing.
“The Government’s stimulus has been good but we are not really seeing it translating to signing of contracts for first home buyers yet,” Mr Dale said.
He expects a second stimulus package to be announced by the Government within weeks.
“We need to build confidence within the household sector,” Mr Dale said.
