More cuts needed to continue to boost home sales

A surge in new home sales after the Reserve Bank's November rate cut shows that more cuts are needed to support the fragile housing market, the HIA says.
Property buyers appear to be waiting for the central bank to make a move before taking the plunge after new data shows that new home sales jumped 6.8% in November after the first interest rate cut in two and a half years.
HIA chief economist Harley Dale said the boost was welcomed but that there was still room for improvement. “There is a long way to go to restore new home sales volumes to acceptable levels," Dale said. "At present, sales volumes are running at least 20% below what you could conservatively call healthy."
Dale called on the RBA to continue to cut rates to provide a catalyst for a sustained and strong recovery in the housing market.