Interest rate uncertainty dogs builders as buyers stay away

More than half of residential construction firms expect sales to remain sluggish or even deteriorate, even as inquiries at display homes start to increase after a big drop last year, according to a survey of major builders.

Only 41 per cent of companies polled by Macquarie believed sales would increase, although that was a marked increase from just 11 per cent surveyed last year. The cautious outlook comes despite half of builders noting sales had actually increased over the past three months – a turnaround from 86 per cent of builders posting flat or declining sales last year.