3/03/2008

3 March 2008

Pre-Purchase Home Inspections Plunge by 28%

Archicentre, Australia's largest provider of pre-purchase home inspections and design services today said its 2008 February bookings were 28% down on the same period last year and 10% down on January 2007 figures.

David Hallett

David Hallett General Manager of Archicentre said, pre-purchase inspections are a frontline indicator of the real estate market as the inspections are carried out a couple of weeks before homes are sold. "We expect to see this drop in inspections reflected in property sales in the next couple of months, especially with another forecast lift in interest rates by the Reserve Bank tomorrow. Mr. Hallett said the decrease in the number of housing inspections is a clear indicator that the market in the middle to higher valued properties is feeling the bite of the rising interest rates. "It is clear home buyers are becoming cautious as they see an increasing number of people losing their homes through foreclosures or over borrowing and rising interest rates."

Archicentre has also seen a drop in its design and renovation services by about 10% when compared to 2007 figures.

Mr. Hallett said, "the slowing down of the property market should mean those people looking to build a new home or undertake renovations should see trades people becoming more accessible and prices dropping as builders compete for work. "It is quite clear the current housing situation is a national tragedy as people lose the ability to afford basic shelter."

In 1996 in Sydney the annual income to buy a home was $62,000, in 2007 it was $145,412., in Melbourne it was $43,357, in 1996 and $106,401in 2007. Source: Parliamentary Library, Research Note, No 7, October 2006.

Mr. Hallett said that rising interest rates had placed pressure on home buyers to ensure that they purchased properties without costly faults that can lead to expensive and unbudgeted costs.

www.archicentre.com.au
Commercial Inspections; Building Status Reports; House Inspections; New Homes; Home Renovation; Home Improvements; Design Concepts;
New Housing Reports; Pest Inspections; Pre-Purchase Inspections; Building Progress Reports.

Media Enquiries:
David Hallett General Manager Archicentre (03) 9819 4577 Mobile: 0439 439 115
Ron Smith Corporate Media Communications (03) 9818 5700 Mobile: 0417 329 201