Demand for skilled labour in the housing industry is running well below normal, but a recovery could quickly expose underlying skills shortages.

The Housing Industry Association’s trades report, based on a survey of builders and sub-contractors, showed skilled trades became easier to find in the June quarter.

“The HIA Trade Availability Index rose to +0.24 in the June 2013 quarter from +0.19 in March 2013, meaning that the modest oversupply in trades has increased slightly,” the HIA said in its commentary on the data.

As a result of its relatively abundant supply, the price of skilled trades grew slowly.

The report’s index of trade prices rose by 0.4 per cent in the June 2013 quarter and by 2.2 per cent from a year earlier.

The consumer price index (CPI) rose by 2.4 per cent over the same period.

“Today’s report is also significant because it indicates that many trade rates have not kept pace with general inflation, another consequence of the weak base from which demand conditions are endeavouring to recover,” HIA senior economist Shane Garrett said.

But this might not last.

“When the residential construction industry does recover, the current profile for skilled labour will quickly reverse,” the HIA said.

HIA executive director of industry workforce development, Liz Greenwood, said the declining availability of plumbers and plasterers in particular pointed to “inevitable challenges” as residential building activity picks up.