Tuesday, August 2, 2011

AUSTRALIA'S NEW HOME MARKET MIRRORS THE US SLUMP

Sales of new homes in Australia fell at the fastest rate last month in more than five years as demand "hit a wall", according to the Housing Industry Association. Victoria and Queensland were the worst performers, fueling the 8.7 per cent tumble in sales - the worst result since May 2006.

Australian new home construction
In Victoria, sales of detached new houses fell by 10 per cent in June, compared with May.  Following the 6.7 per cent sales slide in May, the fall last month was "somewhat alarming", the Housing Industry Association said.  Queensland was the only state that suffered a faster slide, with sales collapsing by 17.1 per cent.
"There has been widespread anecdotal evidence for some time that new home demand hit a wall in mid-2011 and (yesterday's) figures unfortunately confirm that situation," HIA chief economist Harley Dale said. "Evidence is mounting that weakness in the new home sector is accelerating even with interest rates on hold."
The figures follow a HIA study last week which showed that residential land sales in the March quarter were down 43 % on the same time last year.

Across the 2010-11 financial year, new home sales were down 10.2 per cent, with detached house sales falling 10.7 per cent.

1 comment:

Franki said...

Hate to see it happening anywhere in the world but this just proves if a butterfly flaps its wings in the jungles of Brazil, housing will suffer everywhere.