In light of new figures relating to loans for property in Australia, the federal government must take action to reduce the cost of new homes, the Housing Industry Association (HIA) has claimed.
The Australian Bureau of Statistics' Housing Finance report for March 2011 showed that, over the first quarter of the year, the total number of loans for the construction and purchase of new dwellings fell by 12 per cent.
Dr Harley Dale, chief economist at the HIA, said that these figures show the appropriateness of keeping interest rates steady.
"The clearest signal in today's figures, however, is the need for federal and state governments to step up to the plate and deliver on stimulus and reforms to reduce the cost of new housing," Dr Dale added.
Earlier this month, the HIA claimed that the federal Budget could have done more to help the recovery of the Australian property market.
Posted by Ravin Chatlani