New Home Sales Post First Growth In June
Latest numbers reveal local new home sales jumped 2% in June – the first monthly growth to occur this year. Despite the increase, new home sales for the financial year remain considerably low.
According to HIA Principal Economist, Tim Reardon, new home sales during the 2017/18 financial year dropped 5.3% versus the same period last year.
“The increase in sales in June is small in comparison with the fall in sales that has occurred throughout 2018,” asserts Reardon.
HIA’s latest numbers reveal new home sales for the first six months of 2018 remain 2.9% lower compared to the last six months of 2017.
Credit tightening in the last twelve months stems from property price declines, coupled with the Banking Royal Commission.
New home sales climbed in all states except Victoria, which dropped a further 0.4% in June – a “well overdue” decline Mr Reardon affirms.
A jump in NSW new home sales follows a year of slow growth, with numbers 13.3% lower in 2017/18 versus the previous year.
On a monthly basis, NSW new home sales jumped 8.3% in June month-on-month.
“ABS data shows approvals for private sector detached houses fell dramatically in May 2018. Approvals data typically trails the new home sales data by three to six months and the dramatic fall in approvals in May is likely to be reflected in the June data,” concludes Mr Reardon.