[staringclown]

New home sales buoyed by rate cut

Quote

The volume of detached house sales soared 22.8 per cent in New South Wales and 11.6 per cent in Victoria. They also rose 5.7 per cent in Western Australia and 4.7 per cent in Queensland. In South Australia they fell 11.3 per cent.

Mr Dale said a full recovery in housing activity wouldn't emerge unless the government offered well-targeted stimulus and began to reform housing planning policy to cut the barriers to new housing supply.

Measures of growth in the construction sector show that it remains under pressure, as households borrow less and real estate prices keep housing out of reach for would-be buyers.
The Australian performance of construction index for December, released today, remained under the 50 point level separating expansion from contraction for the 19th straight month even as the index rose by 1.4 points to 41 in December, helped by the resources-related construction.

[cobran20]

staringclown, on 09 January 2012 - 12:16 AM, said:

Mr Dale said a full recovery in housing activity wouldn't emerge unless the government offered well-targeted stimulus

In other words, another Krudd's First Home Vendor Boost. Watch our deficit grow again if it is introduced.

[mattau]

"Measures of growth in the construction sector show that it remains under pressure, as households borrow less and real estate prices keep housing out of reach for would-be buyers."

Yep it does seem that real estate prices do keep housing out of reach of would-be buyers, and in particular for FHBs. Seems that 60,000 less homes were bought by FHBs in 2011 as compared to 2010.