The states where new home sales are dropping

Adam Smith 31 March 2016

The states where new home sales are dropping

New homes may be losing their lustre with buyers as sales saw a sharp decline in February.

There’s been a sharp decline for new home sales as the market loses its lustre.

The HIA New Home Sales Report has recorded a 5.3% fall for February, with Queensland showing the sharpest decline at 12.1%. Western Australia and Victoria were the only states that saw increases.

Source: HIA

HIA chief economist Harley Dale said the decline was “larger than desirable”.

“HIA New Home Sales are losing some of their lustre as a downward trend becomes more firmly entrenched,” Dale said.

But Dale claimed there was no reason “to loudly ring alarm bells”.

“New home sales are down, but far from out. Over the three months to February 2016, the sale of detached houses increased by 1.8%. The sale of multi-units nudged up by 0.8% over the same period.”

Dale said it would be important to pay heed to key leading indicators in the year ahead like new home sales and building approvals.

“Stage one of a down cycle in new home building will be moderate, but signs of a sharper contraction in subsequent stages may emerge as the year progresses.”

Image: Shutterstock

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