Will Swan budget for a housing handout?

The absence of any sight of a housing recovery throws up the possibility of stimulus for the sector in the federal budget – but direct assistance for buyers may trigger new problems for the market.

The lengthening absence of data indicating any housing construction recovery – and accompanying credit growth – must be weighing on Treasurer Wayne Swan during his May budget preparations.

I suspect the deliberations will possibly come down to whether the federal government throws some money at the problem so that it takes effect this year or saves any announcement until the 2013 election year.

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