New home sales in Australia’s largest states hit their lowest level since October 2013 with sales sliding in both the detached house and multi-unit sides of the market according to the latest HIA New Home Sales Report.
HIA says during June, new home sales declined by 6.9 per cent compared with the previous month and were 11.9 per cent lower than the same period last year.
The reduction in new home sales during June 2017 was comprised of a 5.8 per cent reduction in new detached house sales and a 10.7 per cent fall in new multi-unit sales.
There were considerable differences in sales in June around the states with new detached house sales rising both in Victoria (+4.1 per cent) and Western Australia (+21.1 per cent). However, sales fell in New South Wales (-9.7 per cent), Queensland (-29.3 per cent) and South Australia (-23.7 per cent) during the month.
“These results support HIA’s latest set of forecasts that new dwelling commencements are set to continue easing until late 2018″. explained HIA Senior Economist Shane Garrett.
“The reduction in sales of both detached houses and multi-units during the month of June continues the trend underway since sales peaked in early 2015.
“The fall in sales needs to be considered against the backdrop of residential building coming off a record peak of activity in 2016. We project that residential building will still be operating at a historically high level,” concluded Shane Garrett.
