New home sales past peak

Adam Smith 31 May 2016

house line graphTotal new home sales have fallen, leading an industry economist to declare the market past its peak.

The HIA New Home Sales Report has shown a 4.7% decline for new home sales in April, with a 3% decline for detached house sales and a 10.8% fall for unit sales.

Four of the five mainland states saw lower sales in April. Only Victoria saw a rise, with sales of detached houses rising 14.3% in the state due to broad-based builder activity in April.

HIA economist Diwa Hopkins said the figures indicated that the peak for new home sales had passed, but downplayed the decline in sales as “very mild”.

“This signals the potential for very healthy home construction activity throughout 2016, much as we have been anticipating,” Hopkins said.

Hopkins said the decline in activity brought new home sales in line with the HIA's forecasts.

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

Hopkins forecast a “modest decline” in new home building for the remainder of 2016, largely driven by a decline in multi-unit construction, and pointed to the "successive record levels that occurred in 2015 and 2014".

Property transactions on downward trend

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Disclaimer: At we provide factual information and general advice. Before you make any decision about a product read the Product Disclosure Statement and consider your own circumstances to decide whether it is appropriate for you.
Rates and fees mentioned in comments are correct at the time of publication.
By submitting this question you agree to the privacy policy, receive follow up emails related to and to create a user account where further replies to your questions will be sent.

Ask a question