Apartment market drags down new home sales
New home sales have continued to decline from record highs.
New figures from the Housing Industry Association (HIA) has revealed a 3.7% monthly decline for new home sales in July. Sales for the calendar year to the end of July are 4.6% lower than the same period last year, the HIA said.
“This trend is consistent with HIA’s expectation that activity will decline modestly from these record high levels over a number of years,” HIA principal economist Tim Reardon said.
Reardon said new home sales have continued to decline since their peak in mid-2015.
“July’s result was driven by a 15.7% decline in multi-unit sales and a more measured reduction in detached house sales. The large drop in multi-unit sales this month is in contrast to strong sales volumes late in 2016 and early 2017,” Reardon said.
Victoria bucked the trend, Reardon said, with a 9.8% rise in new home sales on “what is already a very high level of activity”.
“On the other hand, the Western Australian Government’s First Home Buyers Grant ended on 30 June 2017, and as a consequence sales in July fell sharply from what was already a very low base,” Reardon said.