Master Builders Australia has bemoaned the disappointing housing finance results published by the Australian Bureau of Statistics, saying it shows little sign of an imminent recovery.

 

The figures for finance for the construction and purchase of new dwellings fell 1.9 per cent in July, with the MBA saying it jeopardizes the signs of an early recovery.

 

“The July figures failed to build on previous positive momentum and unless sentiment shifts, residential builders are in for more tough times as recovery looks likely to be many months away,” MBA Chief Economist Peter Jones said.

 

Lack of confidence and ‘flat to falling’ house prices mean the four rate cuts over the past nine months have failed to boost household confidence, forestalling purchasing decisions.

 

“The industry needs the rate cuts to take hold and provide the spark for a recovery for the housing sector.

 

“If as suspected, the previous rate cuts have failed to take hold, the Reserve Bank needs to act,” Mr Jones concluded.