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Housing market tipped to bounce backThe Housing Industry Association (HIA) is forecasting the new home market will pick up in far north Queensland, despite a recent drop.

A survey has found new home sales dipped in Queensland last month.

A HIA report has found a 5.2 per cent drop in sales of newly-built dwellings.

HIA north Queensland executive director John Futer has attributed the drop to interest rate rises.

“We are probably going to be seeing the Reserve Bank levelling interest rates now, that being the case, we believe we’re going to see some more investors trickling into the market and we think that the situation in Cairns will improve,” he said.

“We are certainly not looking down the barrel of a boom but certainly an improvement.”

Mr Futer the drop has hit Cairns hard.

“Certainly unit development has been very poor and there are a number of reasons for that, banks have had fairly tight monetary policies and of course we’ve had a number of interest rate rises,” he said.