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Stuart Clues Executive Director HIA
HIA Executive Director, Tasmania, Mr Stuart Clues has told David Woiod that in the month of January
2010, the total number of seasonally adjusted loans contracted by 8.0 per cent in Tasmania, compared to a 7.9 per cent contraction for Australia as a whole.

However, In original terms, lending for construction of new dwellings was up 47.3 per cent in the three months to January 2010 compared to the same period a year ago.

The removal of the Federal Government’s First Home Buyer Boost and increasing interest rates has clearly lowered loans activity in both the new and existing homes
market.

The HIA says the Reserve Bank must take stock of the impact that higher interest rates are having on the new homes market. Aggressive interest rate increases will ultimately constrain new housing and push up prices for both home purchase and renters.

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