The federal government’s plan to build 1 million homes is at risk from rising interest rates, the industry body for volume home builders said on Thursday, after reporting a 22.8 per cent monthly decline in new home sales for October.
The slump in new home sales last month showed that ever-increasing mortgage rates were adding to rising costs of detached home building and the construction boom was ending even before factoring in the October and November rate rises, the Housing Industry Association said.
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Michael Bleby covers commercial and residential property, with a focus on housing and finance, construction, design & architecture. He also dabbles in the business of sport. Michael is based in Melbourne. Connect with Michael on Twitter. Email Michael at mbleby@afr.com
