New home sales cool
In a further sign that the new home market is cooling, the Housing Industry Association ’s new homes sales series for June showed that in original terms the sales of new houses and units fell by 22 percent Australia-wide.
The HIA says the slowing in new home sales was largely expected due the pull forward effect of first home buyers and the interest rate rises in May and June. Further, it expects sales to continue to slow in coming months as the industry comes off the highs of early this year.
“The outlook, however, does depend a lot on how affordable new housing will be into next year,” says Ruth Morschel, the HIA’s executive director of public affairs and policy. “It is hoped that with further uncertainty in the US, the Reserve Bank’s measured approach to monetary policy will continue, ensuring that the slowing in housing activity will moderate, allowing industry employment and growth to remain stable.”
An estimated 10,432 new dwellings were sold in June. The fall was consistent across all states with large falls recorded in Victoria and Western Australia. Looking at the less volatile three monthly comparisons, the three months to June showed signs of slowing for the industry with some three percent less dwellings sold than in the three months to March 2002.
Source: Building Products News
22-Jul-2002