Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

New home sales facing downturn

A recent report has revealed that total new home sales have fallen for a second consecutive month, pointing to a downward trend ahead.

The latest Housing Industry Association’s New Home Sales Report has shown that new home sales fell by 4.4 per cent in May following a 4.7 per cent fall in April.

In the month of May, detached house sales declined in three of the five mainland states.

NSW recorded a drop in detached house sales of 11.5 per cent, followed by Victoria, which experienced a fall of 8.2 per cent.

In Queensland, detached house sales fell by 11 per cent.

Advertisement
Advertisement

Meanwhile, detached house sales increased in South Australia by 3.8 per cent and in Western Australia by 5.4 per cent.

However, despite this downturn, HIA chief economist Harley Dale emphasised that there is no cause for concern.

"There is nothing alarming to a reversal in the trend for new home sales," Mr Dale commented.

"There is a cyclical downturn ahead for new residential construction activity, as new home sales signal, but the early pull-back will be mild by historical standards."

Mr Dale said that the HIA is of the view that a decline in new dwelling commencements will gather momentum in the next two financial years, following four years of growth that have been significantly beneficial to the broader Australian economy.

"This economic benefit delivered by new home construction in recent years is unprecedented," Mr Dale said.

"It creates a platform for the federal government to provide leadership on the key issues of new housing supply, affordability and home ownership, which will in turn benefit Australia’s economic growth and future standard of living."

[Related: Investors 'doubling up' on Aussie real estate]

New home sales facing downturn
mortgagebusiness

Latest News

From today, 40,000 new places have become available under the federal government’s schemes to help Australians to buy their own home.  ...

The big four banks continue to dominate the mortgage market with three reporting an increase to their home loan books over May, APRA stats r...

The prudential regulator has revoked Citigroup Pty Limited’s banking licence following the completion of its sale to NAB. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think the new NSW property tax will help or hinder first home buyers?

Website Notifications

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