Australians are turning away from buying new homes in every state but one

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  • Australian home sales have been slipping for the last 12 months, dropping 12.8% according to the latest figures.
  • The Housing Industry Association (HIA), noted that a decent quarterly result wasn’t enough to substantially offset the year-long decline.
  • But South Australia is the one state managing to buck the trend, which has seen new home sales jump 10.1% over the last 12 months.

New homes in Australia just aren’t selling like they used to.

Nationally, new home sales are down almost 13%, according to the latest Housing Industry Association (HIA) figures, despite an uptick in the most recent quarter.

“Sales for the three months to July increased by 6.1 per cent on the preceding quarter and remained down by 12.8 per cent compared to this time last year,” HIA chief economist Tim Reardon said in a note.

The data covers the largest builders in Australia’s five largest states and noted a particularly weak July.

“New home sales fell in the month of July by 7.2% compare to the previous month and well down from levels experienced earlier this year,” Reardon said.

But while national sales continue down in the doldrums one state is bucking the trend over the last 12-months entirely.

South Australia, the report noted, “has managed to withstand the majority of the declines thus far”. While it saw a slight fall of 4.5% during the most recent quarter, sales in the state remain 10.1% up on the previous year.

The other four states meanwhile have had the opposite experience, seeing an uptick in the July quarter despite maintaining 12-month slumps. That’s despite recent stimulus.

“The two interest rates cuts, a tax cut and the repeal of regulatory restrictions have not yet flowed through will encourage increased activity in the home building market,” Reardon said.

As building approval decline simultaneously, the effect of those cuts will be closely followed.


Full article is at: https://www.businessinsider.com.au/australians-are-turning-away-from-buying-new-homes-in-every-state-but-one-2019-8

 

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