Added over 8 years ago

Is the market correcting itself? New home sales stats shows the market is trending down

There has been a series of recent data releases that are suggesting a possible minor correction in the property market. Although there are no indication as yet of prices dramatically decreasing, demand appears to have slowed down in NSW and Victoria and fallen in the other states.

 

The HIA-Jeld Wen New Home Sales Report, which surveys major residential builders, found that new home sold edged up 0.6 per cent in February to just over 9,000 homes. The key statistics from the reports include:

  • Private house sales increased by 1.5 per cent while sales of apartments fell 7.6 per cent
  • Sales increased in NSW by 0.9 per cent
  • Sales increased in Victoria by 2.9 per cent
  • Sales in Queensland fell 13.3 per cent
  • Sales in South Australia fell 4.2 per cent
  • Sales in Western Australia fell 2.2 per cent

 

Australian Bureau of Statistics also reported mixed stats on dwelling approval and commencements:

  • Dwelling approval fell 24.8 per cent in the year ended January. Seasonally-adjusted figures showed a 15.9 per cent fall in January from the previous month.
  • There was also a 5.4 per cent fall in dwelling commencement in the December quarter
  • On the other hand, apartment commencement increased by 4.2 per cent in the December quarter, bringing total apartment comments to 27.9 per cent increase for the year

 

These data suggests that poor housing affordability, wind up of government stimulus, tough financing environment and the impact of the GST on new dwellings are all affecting the property market. It'll be interesting to see how the market plays out in the ensuing quarters.

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Posted by God at 9:28 pm 0 Comments

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