The federal and state governments need to work together to reduce the costs associated with purchasing a new home, according to the Housing Industry Association.
The voice of the Australian residential building industry asserted that steady interest rates and reforms to policies and processes are key to improving the Australian housing market.
Reforms could cut the “excessive costs of new housing” and possibly make it easier for first-time buyers to access new home loans, Matthew King, HIA economist, commented.
The Reserve Bank of Australia (RBA) decided to hold interest rates steady at 4.75 per cent for the fifth month in a row this week, in a move that was applauded by economists.
Tim McKibbin, chief executive officer of the Real Estate Institute of New South Wales, noted that the decision was wise, particularly in the wake of natural disasters in many parts of the country earlier this year.
He urged the RBA to continue to assess the interest rate on a month-by-month basis, adding that a sensible decision would be to maintain steady rates for the foreseeable future.
Some economists predict a rate increase of between 0.25 per cent and one per cent in the next 12 months, but Mr McKibbin stressed it is important to keep rates steady to foster economic recovery in Australia.