On the up: What will higher interest rates mean for real estate investors in New Zealand and further afield?
The Land of the Long White Cloud is shaping up to raise rates and the country may well be a bellwether for the Australia...
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."
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.