While housing finance data continues to improve, housing construction data is weakening, with the release of quarterly construction materials volumes by the Australian Bureau of Statistics on Friday showing further weakness in volumes of concrete blocks, clay bricks and roof tiles – materials typically used in housing construction (see below chart).
When added to new home sales tracking at 15-year lows:
Housing approvals still below long-run averages (albeit improving):
And falling construction employment:
The Reserve Bank of Australia’s and Treasury’s goal of having housing construction fill the void left as the mining boom unwinds needs more oomph.