Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

New home sales weak

Staff Reporter 4 minute read

Staff Reporter

The RBA is being urged to leave rates on hold as new home sales drop for the fourth consecutive month.

According to the latest HIA – Jeld-Wen New Home Sales Report, there was a 2.6 per cent decrease in new home sales across Australia during August.

Over the last three months to August sales were down by 13 per cent to be 11 per cent lower when compared to the same period in 2009. Building approvals also were down by 6 per cent for the three month period to July.

Advertisement
Advertisement

HIA chief economist Dr Harley Dale said that the new home market was entering a period of softer demand and expects further weakness to come.

“An array of leading housing indicators, including new home sales, is signalling a fall in housing starts in 2011, even if interest rates remain steady,” Dr Dale said.

“A premature hiking of interest rates would exacerbate the impending decline in new home building.

"Previous interest rate hikes and the withdrawal of fiscal stimulus have dampened new housing demand, while there has been insufficient progress made in reducing the supply side barriers that raise the cost of new housing.”

New home sales weak
default
TheAdviser logo

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

PROMOTED CONTENT


default

 

more from the adviser
Carolyn Murphy ta Teachers Mutual targets brokers in digital bank launch

Hiver, a new digital bank to be launched under Teachers Mutual, i...

mortgage money house Qld real estate body calls for stamp duty reform

The REIQ has slammed the Queensland government for failing to act...

Alexis Holloway ta Pallas Capital appoints senior credit manager

The non-bank lender has appointed a senior credit manager whose r...