Prices Slow Home Construction: Australia

Housing construction is dropping off down under. And some suggest that prices are the reason. The Australian, "The slowdown is best illustrated by the construction industry, where housing starts are down by about 10-15 per cent and looking soft at the lower level."

"The good news is that, unlike in previous downturns, in the housing area there is not a substantial overhang of stock because building rates have not been substantially above demand. The sluggishness in new buildings is caused because houses have become unaffordable, particularly in Sydney."