Labor’s housing failures shown again with poor financing commitments

The latest financing figures, released today by the Australian Bureau of Statistics, revealed the continuing downward spiral of the Western Australian housing market, Shadow Minister for Housing and Works John McGrath said.

“The ABS figures for April 2008 show a recurring decrease in the number of finance commitments in WA,” Mr McGrath said,

“These show how the State’s housing crisis has continued to worsen under the Labor Government with financing commitments for new homes and established dwellings both taking a dive this month.

“At the end of the day, this has greater implications for housing affordability as it will increase the pressure on rental prices.”

The ABS published its monthly housing finance data today confirming industry concerns that problems in the global financial sector would exacerbate problems in the state’s housing market.

“These figures demonstrate that loans for housing have fallen significantly over the last month as buyers are unable to afford to enter the market because of the inflated purchase prices and interest rates.”

This time last year, the April figures showed a seasonally adjusted increase of 11% that was 9,229 financing commitments; for April 2008 these same figures showed a decrease of 9.3%, that is just 6,821 financing commitments.

“These figures are damning,” Mr McGrath said, “The Labor Government has failed to keep the housing market stocked for the growing WA population, exposing the market to increased pressure during these times of global economic uncertainty.

“The population continues to grow but the number of new homes do not.

“The Labor Government has not protected the Western Australian dream of home ownership.”

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