August sales slump as borrowers ?fence sit?

Mark Hewitt, AFG general manager of sales and operations, said the figure indicated borrowers had decided to fence sit as a result of RBA minutes issued last month which suggested a rate cut would be made in September.

“Our members have been speaking to a lot of potential borrowers who were waiting to see what happens with rates,” he said.

Mr Hewitt said the RBA’s release of policy meeting minutes was a positive way of keeping the public well-informed, but commented that continued flagging of future rate falls could contribute to a “slower than hoped for recovery due to the fence sitting mentality of investors and consumers”.

Borrowers pulled back from the market most in NSW, with a 31 per cent drop in sales compared to July.

Queensland was least affected with sales falling 10.8 per cent.

Published: 04-09-08

Written by Staff Reporter

Last Updated: 09 March 2022

Published: 04 September 2008