The expectations for the monthly data on home sales for July are varied, with forecasts of an increase of at least 0.9 percent being projected. In a report from businessinsider.com, Bloomberg had initial reports at 5.40 million for June while May saw sales at 5.35 million.
A group of Bank of America Merrill Lynch economists who previewed the recent data had said, "After a strong 5.1 percent gain in May, we expect existing home sales to slip back, falling 1.0 percent to 5.3 million in June. Smoothing through the monthly swings, this would still imply a modestly higher pace of activity."
It added, "Pending home sales, which track signed contracts, have increased steadily since January. Moreover, mortgage purchase application have been on a higher trend. Thus, while we expect a slight decline in June, it does not offset the gain in May and continues to point to improving home sales."
Leading the charge in terms of home building Down Under is New South Wales. The state of Western Australia came in second while Victoria came in third. In a report from propertywire.com, the Housing Industry Association's biannual house report indicated the high levels of construction in multi-unit dwellings as well as in single detached homes.
According to HIA economist Geordan Murray, "The buoyant housing market has played a significant role in elevating New South Wales up for the rankings." He did warn though that the rapid rate of increase in prices would put pressure on affordability.
Murray added, "Lending figures reaffirm the challenges facing first home buyers. First home buyer lending highlights this as the weak spot in the housing market, and ranked New South Wales as the third weakest jurisdiction on this indicator."
On another note, the HIA raised red flags as to the increase on the GST property tax on new housing, now pegged at 15 percent, would raise prices by thousands of dollars. With the higher prices, the dream of home ownership would become a distant reality for many Australians.