The latest Housing Industry Association (HIA) Trades Report indicates an ongoing weakness in the housing industry throughout 2011 and a continued issue with the availability of skilled labour for the sector, according to HIA chief economist Harvey Dale.
It registered as 0.04 in the December quarter of 2011, indicating a moderate oversupply - a reading below zero indicates an undersupply of trade.
Dr Dale noted that a soft housing market and a fall in new home building had made it very likely the pressure on the availability of skilled labour would slacken over the last quarter.
However, he expressed the opinion that this gives the government an opportunity to address the problems facing the industry.
"During softer housing conditions is precisely the time to be accelerating policy solutions to address this structural labour shortage," explained Dr Dale.
The HIA warned last week that a fall in building approvals underlined the need for stimulus from the Australian government.
Posted by Craig Francis
