The Housing Industry Association (HIA) says that the new home sales reports has declined modestly. Though, this contrary to the current condition of the industry in which the housing market has peaked.
The Australian Financial Review magazine reports that new home sales has gone lower in the month of July since detached houses and units sales have fell. "Total sales slipped 1.8 per cent to 7836 in July from 7979 in June, as standalone houses slipped 1 per cent to 5998 and sales of units fell 4.2 per cent to 1838," HIA said.
The figures reported indicate that "industry constraints, along with regulator-driven moves to curb investor borrowing on property, have capped the country's biggest-ever housing boom, even though Sydney suffers from an unmet need for new housing and could face a shortfall of almost 200,000 homes by 2024."
It is also stated in the report that it is only in New South Wales that sales have been boosted for the detached houses in July while in other areas of the state have gone significant declined. Consequently, NSW's figure of 1359 is considered the largest since August 2014 with 1476 recorded new houses. "But while the NSW total of 3923 houses for the three months to July was up 7.5 per cent on the previous three months, it was slightly down on the same period a year earlier."
As for the home sales in Victoria, the figure has gone down to 1710 from 1750. It has been considered the lowest since October. The report in July shows that there's a significant 6.3% decrease compared to the past 3 months. It is also "below the total in the same period in 2014 by 8.1%. Collectively, the total new home sales is 18017 from April to July, which is also less than the previous year and in the same period.
The Australian Magazine also says that the apartment sales have also declined by "4.2 per cent in July following a 2.9 per cent dip in June." According to the HIA Economist Dr. Dale, it was in the month of May wherein the sales have strengthened and has a positive impact in the report in July showing 8.3% in multi-unit sales. In addition, a detailed figure will be released tomorrow by the CoreLogic RP Data.
