De­cem­ber rate cut jus­ti­fied: REIA

The Riverine Herald - Local Real Estate - - LOCALREALESTATE.COM.AU -

Hous­ing fig­ures re­leased on Mon­day by the Aus­tralian Bureau of Statis­tics show there has been a mod­est re­sponse to the in­ter­est rate cuts of May, June and Oc­to­ber, Real Es­tate In­sti­tute of Aus­tralia pres­i­dent Peter Bushby said. Hous­ing fi­nance fig­ures for Oc­to­ber show, in trend terms, the num­ber of fi­nance com­mit­ments has in­creased by a mod­est 0.6 per cent, fol­low­ing sim­i­lar in­creases in Septem­ber and Au­gust. If re­fi­nanc­ing is ex­cluded, the in­crease in trend terms for Oc­to­ber is 1 per cent, fol­low­ing a rise of 1.2 per cent in Septem­ber. ‘‘In trend terms, in­creases were recorded in all states and ter­ri­to­ries ex­cept the ACT, which re­mained flat,’’ Mr Bushby said. ‘‘The largest in­crease was in the North­ern Ter­ri­tory, up 3 per cent in trend terms. ‘‘In­creases were ev­i­dent for the pur­chase of new dwellings, up 4 per cent in trend terms and the pur­chase of es­tab­lished dwellings up by 0.5 per cent in trend terms. ‘‘The num­ber of com­mit­ments to the con­struc­tion of dwellings was down 0.9 per cent in trend terms. ‘‘The num­ber of first-home buy­ers, as a per­cent­age of to­tal owner oc­cu­pied hous­ing com­mit­ments, de­creased to 18.7 per cent in Oc­to­ber 2012 com­pared to 19.4 per cent in Septem­ber 2012. ‘‘The long-run av­er­age pro­por­tion is 20.2 per cent.’’ The value of in­vest­ment hous­ing com­mit­ments rose by 2.2 per cent, in trend terms, in Oc­to­ber which fol­lows on from the Septem­ber in­crease. ‘‘Th­ese hous­ing fi­nance data fig­ures in­di­cate that the RBA’s rate re­duc­tion in De­cem­ber was jus­ti­fied,’’ Mr Bushby said. ‘‘With in­fla­tion within the RBA’s tar­get zone, I hope they act in the in­ter­est of home own­ers with an early 2013 re­duc­tion. ‘‘That would cer­tainly make it a happy new year.’’

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