Housing finance commitments fell back in June as the market struggles to shrug off negatives caused by the ending of the Government's First Home Owner Boost and rate rises, according to Master Builders Australia.
Peter Jones, Master Builders' chief economist, says "The faltering housing recovery still needs to overcome a hangover from the First Home Owner Boost scheme, the lingering effects of the credit squeeze and higher interest rates.
"Although there is a solid pipeline of new building work yet to be done, Australia needs a major phase of residential building to go anywhere near to meeting the housing needs of the population."
The total number of dwellings financed for owner occupiers, seasonally adjusted, fell by 3.9 per cent in June to be down 28.6 per cent on June last year.
The number of loans for new dwellings (construction/purchase of new dwellings combined) fell by 4.8 per cent in June to be down by 21.6 per cent on the same month last year.
Meanwhile the number of loans for the construction of dwellings fell by 5 per cent in June, to be down 24.7 per cent on the same month last year, and the number of loans for the purchase of new dwellings fell by 4.5 per cent in June to be down 13.7 per cent on the same time last year.
Loans for the purchase of established dwellings fell by 3.7 per cent in June to be down 29.9 per cent on the same time last year.
