Fall in housing finance figures
The Australian Bureau of Statistics yesterday released figures that show a fall in housing finance.
These falling figures demonstrate that the recovery in the housing market is in danger of stalling, according to Master Builders Australia.
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Seasonally adjusted, the total number of dwelling commitments fell 0.5 per cent in November 2012.
Commitments for construction of new dwellings fell by 1.8 per cent and commitments for the purchase of new dwellings fell 10.3 per cent.
Master Builders Australia’s chief economist, Peter Jones, said the fall jeopardises the recovery of the housing market, and “should provide enough ammunition for the Reserve Bank to cut interest rates at the February meeting”.
"Loans for the construction of dwellings and for the purchase of new dwellings combined fell back sharply in the month but remain up seven per cent from November 2011,” Mr Jones said.
"Looking through the monthly volatility of these figures, it appears recent interest rate cuts have not yet worked to attract first home buyers into the market.
"The building industry is now precariously placed after initial signs of recovery in the housing market following a long period of downturn.”
