The easing of mortgage pressure has been felt right across Australia with all areas experiencing a significant easing in mortgage stress over the last four months.

“While these numbers are welcome relief for households, weaker employment prospects in 2009 could undo this good news,” Mr Lamont said.
HIA has stressed the interest rates alone are not a long term solution for housing affordability and that more needs to be done in the areas of investment in infrastructure necessary to support residential development.

“There is also an urgent need to look at restrictions on the availability of finance, which are holding up thousands of new dwellings across Australia. Credit rationing is playing havoc with some sections of the industry. If the industry can get more ready access to finance both production and employment will be significantly strengthened in 2009,” Chris Lamont said.