 New home sales slowing
New home sales have slowed for the month of July, as the surge of first home buyers calms.
Housing Industry Association (HIA) data showed that the number of new home sales only rose a small 0.1 per cent in July. Contrast this to the 0.5 per cent gain in June, and the figures show a slowing trend.
"Housing finance figures point to an emerging recovery in trade-up buyer and investor numbers, but looking beyond first time buyer-related activity, we're not as yet at a point where we can talk of a broad-based recovery in private new home demand,'' HIA chief economist Harley Dale said.
Mr Dale says approval processes could be affecting the recovery and believes the rise in building starts will be "moderate" during the rest of 2009.
New home sales had been increasing dues to low rates and stimulus packages. Figures for the first half of 2009 were showing that new home sales increased by 13 per cent over the previous year.
When the Reserve Bank of Australia meets today, they are expected to leave official rates on hold for another month, however some home loans have already started rising.
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