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Master Builders Australia (MBA) has welcomed the recent interest rate cut and says that soft conditions in the real estate construction industry are reason for further action.
Owner occupied housing finance obligations marginally rose by a seasonally adjusted 0.1 per cent.
Commitments for the actual construction of new residential dwellings, which the MBA considers to be the key indicator, fell 0.3 per cent. Assurances to buy new homes rose 4.2 per cent - also seasonally adjusted.
MBA chief executive Wilhelm Harnisch says the data is a justification for further movement by the Reserve Bank of Australia, saying the cuts in October and December were helping to prop up the industry.
He commented: "However, signs of a housing revival will not be evident until the first quarter 2013.The positive from the October figures is the 4.2 per cent rise in commitments for the purchase of new dwellings."
"This represents off the plan sales and sales from a build-up of unsold new housing stock in response to the various state based incentives to attract more new buyers into the market."
He added that it was encouraging to see the number of first home buyers taking out loans, increasing.
Mr Harnisch concluded by saying that the data from next year will be an indicator if more cuts would be needed.
