Housing loan figures released on Monday by the Australian Bureau of Statistics show the RBA’s rate cut announcement came just in time – and that further reductions may be needed in 2013.
Housing finance commitments rose just 0.1% in October, when many economists had expected a rise of at least 3%.
The Reserve Bank is relying on the housing sector to pick up in 2013, following an expected peak in mining investment. But economists are now saying they may need to cut the cash rate further in order to stimulate growth the housing sector
House values rose 1.1% from September to October, with investment housing experiencing a 2.2% rise. Owner-occupied housing only saw a mere .5% increase.
The number of first homebuyer commitments as a percentage of total owner-occupied housing finance commitments fell to 18.7% in October, down from 19.4% the previous month.