Fur­ther cuts are needed

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

Hous­ing fig­ures re­leased by the Aus­tralian Bureau of Sta­tis­tics show there has been a mod­est re­sponse to the in­ter­est rate cuts of May and June, Real Es­tate In­sti­tute of Aus­tralia pres­i­dent Pamela Bennett said. Hous­ing fi­nance fig­ures for Septem­ber show, in trend terms, the num­ber of fi­nance com­mit­ments has in­creased by a mod­est 0.5 per cent, fol­low­ing the 0.6 per cent in­crease in Au­gust. If re­fi­nanc­ing is ex­cluded, the in­crease in trend terms for Septem­ber is 1.1 per cent, com­pared to the Au­gust in­crease of 1.4 per cent and is the small­est in­crease for the last four months. ‘‘In trend terms, in­creases were recorded in all states and ter­ri­to­ries ex­cept South Aus­tralia,’’ Ms Bennett said. ‘‘In­creases were ev­i­dent for the pur­chase of new dwellings (up 3 per cent) and the pur­chase of es­tab­lished dwellings up by 0.5 per cent. ‘‘The num­ber of com­mit­ments to the con­struc­tion of dwellings was down 0.3 per cent. ‘‘The num­ber of first-home buy­ers, as a per­cent­age of to­tal owner oc­cu­pied hous­ing com­mit­ments, in­creased to 19.3 per cent in Septem­ber com­pared to 18.6 per cent in Au­gust. ‘‘The long-run av­er­age pro­por­tion is 20.2 per cent.’’ The value of in­vest­ment hous­ing com­mit­ments rose by 1.1 per cent in trend terms, in Septem­ber which is the first in­crease in six months. ‘‘These hous­ing fi­nance data fig­ures in­di­cate that the RBA should have re­duced in­ter­est rates again in Novem­ber as the mar­ket re­sponse to the two pre­vi­ous cuts has been mod­est,’’ she said.

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