Home building commitments improve in December
The Australian property market continues to improve across the nation as more people build their own homes.
Housing finance figures released this week (February 11) by the Australian Bureau of Statistics show the number of commitments for the construction of new properties rose 1.2 per cent, seasonally adjusted, in December.
During the same period, commitments for the purchase of newly constructed homes lifted 1.9 per cent - a modest increase that suggests confidence is returning to the sector.
Despite the overall number of dwelling commitments falling 1.5 per cent in December, conditions appear to be improving in the residential building sector - a trend which could be attributed to increasing consumer sentiment.
Peter Jones, chief economist at Master Builders Australia, said the recent figures are encouraging, however, the expert was reluctant to call it a recovery.
"Looked at in isolation, today's figure suggests interest rate cuts from the Reserve Bank may be beginning to gain traction, but any broad based recovery appears a way off," Mr Jones explained.
The economist went on to say that to further drive investment in the sector, the RBA should take further action when it next meets to discuss monetary policy.
"With consumers still reluctant to commit to large investments, the Reserve Bank should give urgent consideration to a rate cut at its March board meeting," he added.