Powered by MOMENTUM MEDIA
subscribe to our newsletter

Home sales outlook positive despite decline: HIA

Only one of the five mainland states experienced growth in detached house sales during April, following a strong rise in March, according to figures by the Housing Industry Association (HIA).

The most recent HIA new home sales report shows that total new home sales declined by 4.7 per cent in April, with detached house sales falling by 3.0 per cent and multi-units by 10.8 per cent.

Victoria was the only mainland state to see detached house sales increase (up 14.3 per cent) due to a large volume of building during the month.

Meanwhile, Western Australia witnessed the biggest decline in detached house sales – down 19.8 per cent – while NSW suffered an 8.1 per cent drop.

Queensland and South Australia also recorded a decline in detached house sales for April, down 7.8 per cent and 1.3 per cent respectively.

Advertisement
Advertisement

HIA economist Diwa Hopkins said the figures for April re-emphasise that the peak for the cycle has passed, but the outlook for new home sales is positive.

“The descent we’re now observing is very mild,” she said. “This signals the potential for very healthy home construction activity throughout 2016.”

Ms Hopkins noted that April’s results are in line with what has been predicted for the housing sector.

“The overall trajectory of new home sales is consistent with our long-held expectations for new home building activity,” she said.

“Our forecasts reflect an expectation that a modest decline in new home building in 2016 will be largely driven by a decline in multi-unit construction, following the successive record levels that occurred in 2015 and 2014.”

PROMOTED CONTENT


[Related: Housing affordability back to 2013 levels]

Home sales outlook positive despite decline: HIA
mortgagebusiness

Latest News

The RBA has studied the role of collateral in credit markets under stress, and has found that collateralised borrowing rose for some segment...

Auction volumes surged significantly over the December quarter across Australia, largely attributed to a “resurgence” in Melbourne, acco...

Loan conditions and collateral guarantees continue to be major stumbling blocks for small businesses looking to access financing, according ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.