House building slump just got Worse Figures for March show value of building consents Fell 24%. Biggest fall in 6 yrs.
The number of consents Fell 30.9% to 1.567 from a year ago Around 1.500 a month down from around 3,000 to month in mid 2004
Apartment consents crashed to 50 for 173 in March from February and down 73% from a year ago March Not just apartments. EXCLUDING apartments, consents Fell Fell 27% and 23% gain. Cost of building house up sharply
Cost per square meter up 22% to $ 1.330 Partly Explained by Fewer apartments, Which are cheaper per square meter Wage Costs up, fuel up Costs, Raw Materials Costs Up What does it mean for house Prices and Interest Rates Firstly house prices. Supply vs Demand Interesting paper just out from Westpac Shows That Supply and Demand broadly in balance right now as lower house building offset by lower migration Purpose supply outweighing demand THEY forecast by 5% by end of 2009 That Will you weigh Even Further House Price Already down 4.2%
We forecast 30% fall from peak icts Interest rate outlook Further evidence of fast Economic Slowdown. Add to argument for rate cut Earlier. Most see cut in Q3 or Q4 Currency dipped to 77 cents U.S. after
