Menu
Business

Fall in home sales figures builds case for interest rate cut

A THIRD monthly fall in new home sales has strengthened the case for another interest rate cut when the Reserve Bank meets next week, the Housing Industry Association said on Tuesday.

The HIA's monthly new home sales report, a survey of the country's largest volume builders, recorded a 3.7% fall in September, driven by a 3.5% fall in detached homes sales and a 4.2% fall in apartment sales.

HIA chief economist Harley Dale said the figures showed a "dire lack of confidence towards housing".

"Interest rates have come down since November 2011 and there is a recognition that the home-buying environment has improved in 2012," he said.

"However, households remain reticent to actually make a decision to buy.

"Interest rate cuts should help foster a recovery in new home sales in the December 2012 quarter, along with new home incentives for first time buyers in three states and a nascent recovery gathering legs in Western Australia."

Mr Dale said the worsening confidence in the housing market should be changed by a rate cut when the RBA meets for the penultimate time this year next Tuesday.

The call comes despite cuts of 1.75% from the RBA board since October last year, down to 3.25% from 4.75% in October 2011.

Topics:  building industry business construction finance homes interest rates property reserve bank of australia


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Changing of the guard

POSITIONAL CHANGE: Ian Henderson has stepped down as Stanthorpe and Granite Belt Chamber of Commerce president.

Positional switch for chamber of commerce.

'Christmas' time to locals

IT'S HERE: Apple and Grape president Greg Thouard at the 2016 grape crush. According to Greg he's been in every one since 1986.

100,000-plus expected to attend Apple and Grape.

Local Partners