Australia New-Home Sales Dropped 3.7% in September, HIA Says
Australian sales of newly built homes declined for a third straight month in September, underscoring the central bank’s decision to resume lowering interest rates.
Sales decreased 3.7 percent to 5,186 from August, when they dropped 5.3 percent, the Canberra-based Housing Industry Association said, citing a survey of the nation’s largest builders. Detached house sales fell 3.5 percent, while apartments were down 4.2 percent, it showed.
“Interest-rate cuts should help foster a recovery in new home sales” in the final quarter, said Harley Dale, HIA chief economist. “The Reserve Bank of Australia needs to play its part by cutting rates again next Tuesday -- a renewed easing of rates in October that is not followed up could add to household uncertainty and, perversely, further damage confidence.”
The RBA reduced its overnight cash-rate target by a quarter percentage point to 3.25 percent this month, ending a three- meeting pause, as it seeks to revive industries outside a resource boom. Traders are pricing in a 64 percent chance the central bank will cut by a quarter percentage point to 3 percent Nov. 6.
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