House Prices Keep Falling
HOUSE costs have come down for the 3rd consecutive quarter indicating the call for a big interest rate cut tomorrow, economic expert* say.
The home house price level came down eight percentage points in the December quarter, the Australian Bureau of Statistics announced.This has comparisons with a downwards revised twenty-four percentage fall in the September quarter, and a 0.8 per cent fall in the June quarter.
In the year to December, the house price level diminished 3.3 percentage, in comparison with an annual rise of sixteen per cent in September.
Economic expert* had anticipated a fall of 1.0 per cent for the December quarter.
Comm Bank of Australia senior economist Michael Workman announced the dorp in house costs made a a hundred basis point interest rate cut by the Federal Reserve Bank of Australia (RBA) on Tuesday more plausible.
“At the moment, the problem is the quanity of properties for sales that have not been sold,” he said.
“That comes about from the global credit crisis.
“You have these factors preventing house prices going up this year.
“They’d you into that side of the quadrant if you were arguing whether something should support a rate cut.”
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