For the second consecutive month new home sales have “moved sideways” as new statistics show sales flattening out in July, according to the Housing Industry Association (HIA).
New home sales increased by 0.1 per cent in July, following a 0.5 per cent rise in June, the figures show.
Detached house sales are “effectively tracking sideways”, rising by 0.3 per cent in both June and July. Over the three months to July sales were still 6 per cent higher compared to the comparable period in 2008 and growth over the first half of 2009 was very strong, HIA chief economist, Dr Harley Dale, said.
“Housing finance figures point to an emerging recovery in trade-up buyer and investor numbers, but looking beyond first-time buyer related activity we’re not as yet at a point where we can talk of a broad-based recovery in private new home demand,” Dale said.
Throw into the mix approvals processes that are bogging down the recovery and a slow start to the social housing initiative and the industry could be looking at a moderate rather than strong lift in building starts through the second half of 2009, he said.
Detached new home sales results varied considerably across the five mainland states in July. Detached house sales increased by 9.8 per cent in New South Wales and 10.2 per cent in Queensland, encouraging results for the two weakest home building states in Australia in 2009. Sales fell by 4.4 per cent in Victoria, 11.6 per cent in South Australia, and 3.1 per cent in Western Australia.
Multi-unit sales fell by 2 per cent in July and this sector remains extremely weak due to restricted finance and low investor interest.
