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Will The Housing Recovery Last?

By Angela Hill

Signs of a recovery in the housing industry may seem promising, but it's also not a sure thing that it will last. Those looking for the right desirable and affordable real estate in Brunswick may be interested to hear just exactly why.

According to the Housing Industry Association (HIA), the organisation's National Outlook for winter 2013 reveals that the new home building recovery may not be sustainable, and therefore might be short lived.

"Ensuring the recovery is sustainable is the key, but that looks unlikely based on current policy settings," said HIA chief economist, Dr Harley Dale on August 13.

Housing starts increased by around 8.3 per cent last financial year after two years of decline, however in contrast to this positive result, HIA has also forecasted a 4.2 per cent decrease for the 2013-14 year.

"There is not enough policy focus on housing reform at a state as well as federal government level. Consequently, a first round new home building recovery looks set to be stopped in its tracks," said Mr Dale.

Currently, WA and NSW are experiencing the strongest form of housing recovery.

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