Home sales failed to rebound after September’s quarter-percentage-point rate cut, according to the latest New Home Sales Report from the Housing Industry Association.
Weak sentiment and the negative impact of higher rates through 2007 and 2008 took their toll.
“There is cause for optimism that the worst may be behind us,” HIA Chief Economist Harley Dale said. “With interest rates on the move down and a tripling of the First Home Owners Grant for new dwellings, we would expect to see a bottoming out in leading housing indicators over the December 2008 quarter.”
In September, new home sales increased by 19.5 per cent in Western Australia and by 4.6 per cent in NSW. Sales fell by 10.6 per cent in Queensland and were down by 9.7 per cent in South Australia.
Figures released on Saturday by the Real Estate Institute of Victoria found that median house prices ?in the September quarter fell by 3.3 per cent.
