Decline in new home sales continues

27 January 2016

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Multi-units are largely to blame for a third consecutive monthly decline in new home sales, according to a new report by the Housing Industry Association (HIA).

The most recent HIA New Home Sales Report found that new home sales fell by 2.7 per cent in November 2015 – a result driven by a 15.1 per cent drop in multi-unit sales.

Furthermore, the sale of multi-units dropped by 11.8 per cent over the three months to November.

Detached house sales increased by 1.1 per cent due to a stronger month across the eastern seaboard, but fell by 4.1 per cent over the three months to November.

Three out of the five mainland states experienced a rise in detached house sales, with Queensland leading the way (8 per cent), followed by Victoria (3.3 per cent) and NSW (0.7 per cent).

Meanwhile, detached house sales fell by 1 per cent in South Australia and by 9 per cent in Western Australia.

“In a welcome sign for the short term residential outlook, leading indicators such as HIA’s new home sales didn’t fall sharply in the second half of 2015,” HIA chief economist Harley Dale noted.

“There is, however, a steeper descent apparent for the ‘multi-unit’ market compared to detached houses.”