This could be a real concern as threats of even higher interest rates might be dampening the building market.
It is all very well having record consents being granted but how many will actually turn into new houses?
At this moment there must be thousands of people who are contemplating buying a newly built house, but then having to face finding the deposit, and calculating whether high prices will be too hard to handle. Now the spectre rising interest rates pay put paid to the dream of owning a new house for ever.
It would not surprise me at all if, sooner or later, we will have howls of complaints from the building industry that they are building into a buyer-less vacuum.
This is what happened during the GFC overseas. The mass over building of houses into a market that couldn’t afford to buy them, let alone hold them, creating the biggest financial melt down since the Great Depression of the 1930’s
Building consents rebounded in March but builders say rising interest rates could put the dampener on the nascent recovery.
New dwelling consents climbed 8.3 per cent in March on the previous month, reversing two months of falls. It was a more muted increase of 1.3 per cent when apartments were excluded.
A total of 1999 new dwellings were approved, including 1813 houses – the strongest month for non-apartment housing in six years.