According to the most recent Housing Industry Association’s New Home Sales Report new home sales fell by 4.4 per cent in May following a 4.7 per cent fall in April 2016.
In the month of May, detached house sales declined in three of the five states in Australia.
NSW recorded a drop in detached house sales of 11.5 per cent, followed by Victoria, which experienced a fall of 8.2 per cent. In Queensland, detached house sales fell by 11 per cent.
Meanwhile, detached house sales increased in South Australia by 3.8 per cent and in Western Australia by 5.4 per cent.
However, despite this downturn, HIA emphasised that there is no cause for concern and there is a cyclical downturn ahead for new residential construction activity, as new home sales signal, but the early pull-back will be mild by historical standards.
According to the HIA, a decline in new dwelling commencements will gather momentum in the next two financial years, following four years of growth which have been significantly beneficial to the broader Australian economy.
For the latest property market information visit the blog section of the Naked Edge Real Estate website.