15-year low for new home sales
NEW home sales hit a 15-year low in August, adding weight to the calls for the major banks to pass on the Reserve Bank of Australia’s latest rate cut. New home sales dropped 5.3 per cent to 5,383 in August from 5682 in July to reach their lowest point since 1997, the Housing Industry Association (HIA) said this week. Overall, detached housing sales fell 5.8 per cent in the month, and multi-unit sales fell 2.5 per cent. Continued weakness in home sales indicated yesterday’s rate cut by the Reserve Bank came not a moment too soon, HIA chief economist Harley Dale said. “New home sales for August are the latest in a string of soft new housing updates for this financial year, and that follows a very weak year for new home building in 2011/12,” he said.