Skilled labour in the residential building industry has hit surplus for a consecutive quarter, an industry group says.
The Housing Industry Association (HIA) - Austral Bricks trades report, released today, showed a trend of modest over-supply in the September quarter.
The HIA trade availability index was at +0.06 in the September quarter, following a reading of +0.10 in the June quarter, suggesting a continuing over-supply.
Three of the 13 housing trades were under-supplied in the September quarter, while two were in equilibrium, and the remaining eight showed over-supply trends.
HIA acting chief economist Andrew Harvey said the consecutive trend showed the building industry needed boosting in the short term.
"There is no doubt that new home building is in need of stimulus as we head towards the end of the calendar year 2011," he said.
"The November interest rate cut was a necessary first step but so much more is needed to stimulate a return of residential building to decent levels."
The HIA trade prices index grew by 0.1 per cent over the September quarter, to be up by only 0.4 per cent over the year.
On November 1, the Reserve bank of Australia announced a 25-basis-point cash rate cut, taking it to 4.5 per cent.
