Home sales stalled, but WA and Victoria saw growth
Despite slow growth in the total new home sales in February, two states saw some positive results.
The Housing Industry Association (HIA) has today released the HIA New Home Sales Report for February, which revealed a slow growth of just 0.2% for new home sales across Australia. There was a slow growth in multi-unit sales, with just 0.1% growth, as well as a 0.1% decline in detached house sales.
“The profile for HIA detached house sales and ABS detached house building approvals are very similar," HIA chief economist Harley Dale said. "In the case of detached house sales, in the three months to February this year, the volume fell by 2.2% to a level 5.2% lower than that achieved over the three months to February last year (2016).”
There were two mainland states that had significant increases reported, with Western Australia seeing a growth of 11.3% after an increase of 12.1% in January and Victoria seeing a growth of 5.1%. However, these figures are based on a low base for detached house sales across Australia.
All other mainland states saw a decline in detached house sales, with a fall of 12.6% in New South Wales, 5.7% in Queensland and 0.2% in South Australia.
“As with all aspects of the current housing cycle there are large differences in conditions for detached housing between states and territories," Dale said. "HIA’s detached house sales series for the five mainland states has been consistently highlighting this point for some years now. In 2017 we expect the profile for leading indicators such as detached house sales to slowly improve for Western Australia and South Australia. At the same time, the volume of detached house sales on the eastern seaboard is expected to trend lower.”