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(3)The crisis in world financial markets means that getting credit is not getting any easier. This is a particular problem for builders, because both commercial property investors and house buyers borrow most of the cost of the properties they buy.
Friends First economist Jim Power says that after this week's implosion in world credit markets, it's hard to see it coming back on stream for several years.
"Consumer confidence is shot for lots of reasons," he says. (1)"House prices will fall further and no one in their right mind is going to buy a house in the current environment".
Power adds that (2) there are more houses for sale than the number of people who want to buy them, a problem that will have to be ironed out before the industry can turn around...
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