Weak property market signals need for rate hold
Weak sales figures in the property market have reinforced calls for a hold on interest rates, according to a leading industry body.
The latest HIA-Jeld-Wen New Home Sales Report released today shows that the number of new homes sold fell by 5.1 per cent in the month of June.
Detached house sales fell by 6.6 per cent in June, with the highest falls recorded in Victoria (10 per cent), Western Australia (5.2 per cent), Queensland (5.1 per cent) and South Australia (4.2 per cent).
The New South Wales property market experienced the least decline in sales, with a 2.2 per cent fall in June.
The figures coincide with data from RP Data and Rismark on Friday which saw house price growth slump in the June quarter.
HIA Chief Economist Dr Harley Dale said the figures reinforced the case for a period of sustained interest rate stability.
According to Dr Dale, a lack of readily available land and hefty infrastructure charges have put the brakes on sales and development activity.
"Concerted action is required to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply," Dr Dale said.
"Inaction means that Australia's dwelling shortage will continue to increase, pushing up existing house prices and disadvantaging households seeking to purchase or rent a dwelling."