Results published by the Australian Bureau of Statistics (ABS) show that new home lending has slipped back in May. The ABS tracked a 1.4 per cent contraction in the value of total dwelling commencements over the April to May period, while fixed loans entered freefall, recording a 4.6 per cent fall.

 

The Housing Industry Association expressed its concern over the ‘disappointing result’, saying that the industry urgently needs support.

 

“Following two consecutive increases in March and April, the  number of loans for the construction or purchase of new homes fell by 2.4 per cent in May 2012,” said HIA Chief Economist, Dr Harley Dale.

 

“It is evident that new home starts will bottom at GFC-equivalent levels this year, which is a very poor outcome for Australian businesses, households, and therefore the wider economy.”

 

The ABS statistics can be found here