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Housing finance slowdown another reason why Reserve Bank should hold off on interest rate rise
The latest Housing Finance data released by Australian Bureau of Statistics shows the number of housing finance commitments for owner occupied properties fell by 2.0% in July 2009.
The value of housing finance commitments also fell sharply, down 2.3% seasonally adjusted.
“Today’s figures are a stark reminder that the property sector has a long way to go before we are out of the woods,” said REINSW President Steve Martin.
“The 2.0% drop in the number of housing finance commitments should send a strong message to the Reserve Bank to leave interest rates alone for the time being.
“In another worrying sign, the number of first home buyers continues to decline, falling from 27.1% in June to 25.7% in July.
“This latest data reinforces our call for ongoing stimulus in the property sector in order to strengthen what is a clearly a fragile recovery,” said Mr Martin.
Please direct media inquiries to Julian Brophy on 0408 276 749.
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