echoes of 1990 recession at the door

http://www.news.com.au/money/property/echoes-of-1990-recession-at-the-door/story-e6frfmd0-1226422013676

THE house building sector is deteriorating at a pace not seen since Australia was in the throes of recession more than two decades ago.
Research by ANZ economists reveals the number of flats and houses being built has fallen 15 per cent since the cycle peaked last March.
And soft house prices and uncertainty in the global economy continue to undermine sentiment in the property market, according to a team of the bank's analysts.
In a report yesterday, the ANZ team said the severity of the slowdown had been "sharper than previous building contractions".
"And the loss in residential building activity in the current downturn is expected to be only slightly less than during the early 1990s recession," the report said.
The analyst team was lead by ANZ head of Australian economics and property research Ivan Colhuon.
According to their research, housing construction levels remain strongest in Victoria, although approvals are well below the peak levels of late 2010.
They said weak housing market sentiment would continue to affect the sector until early next year.
The study said 134,000 new homes were built in the year to June - below long-term averages and significantly short of underlying housing demand for 196,000 new homes a year.
And despite Melbourne house prices experiencing the largest falls over the past year, the research found the city's housing remained Australia's least affordable.
The number of homes for sale in Melbourne has soared nearly 28 per cent to record levels in the past year.
Research house SQM Research says the pressure of the extra supply is likely to push the city's house prices down $10,000 by the end of the year.