HIA reports marginal rise in new home sales in Australia
New home sales posted only a marginal rise at the start of the new financial year. HIA’s New Home Sales figures show a 1.5% increase in the sale of new homes and units among Australia’s large builders and developers, sales reaching a level of 8,441 in July.
According to Housing Industry Association , the sales for the volatile multi-units sector rose by 13.5% in July, partially reversing a weak end to last financial year. Sales of detached houses were down by 0.1%.
New home sales only inched high at the start of 2007/08 and that is before the negative impact of the August rate hike. Detached house sales were effectively flat which has generally been the case all year.
This is a disappointing first update on the home building industry in the new financial year, suggesting a recovery remains some distance off.
Record low housing affordability is crippling the new residential sector and it is crippling the chances of new aspirants achieving the goal of home ownership.
Equally concerning is the fact that investors have not re-entered the market in aquiring new detached houses for what is a tight pool of rental stock. For renters of both detached and other types of housing a significant increase in supply is essential to turning around the affordability crisis.
The HIA’s New Home Sales survey is compiled from a sample of the large 100 residential builders in Australia and is the leading indicator on new housing activity.
30-Aug-2007