Two economists say a decline in house sales for the third consecutive month will strengthen the Reserve Bank's resolve to keep the Official Cash Rate steady for another few months.
The Real Estate Insititute's House Price Index fell by 0.9% in December, with houses also taking longer to sell.
Bernard Doyle, of Goldman Sachs JBWere, says that suggests there is no immediate need for the Reserve Bank to change its stance.
ANZ Bank's chief economist, Cameron Bagrie, agrees. He says the Reserve Bank is unlikely to raise the Official Cash Rate before the middle of this year.
The next review of the OCR will be announced on 28 January. It has been held at 2.5% since 30 April, 2009 after coming down from 8.25% since June 2008.
