HIA New Home Sales Point To A Healthy 2015/16

The HIA New Home Sales Report, a survey of Australia's largest volume builders, showed a very modest decline in July 2015.

HIA Chief Economist Dr Harley Dale said, "Total seasonally adjusted new home sales eased by 0.4 per cent in July this year, but remain in strong shape.

"New home sales are spending mid-2015 drifting along at a historically high level. it appears that the cyclical peak for total new home sales occurred in April, but the subsequent downward trend is very mild.""Key growth indicators of home building, including HIA New Home Sales, suggest little prospect for further growth in new home construction in 2015/16," Dr Dale said.

"However, following three consecutive years of strong growth which has propped up the domestic economy considerably, both HIA New Home Sales and ABS Building Approvals signal another healthy year for new home construction in 2015/16."Detached house sales increased by 0.7 per cent in July this year. The annual peak for detached house sales has passed. Over the three months to July this year detached house sales fell by 2.8 per cent to be 3.4 per cent lower when compared to the three months to July 2014.

Multi-unit sales peaked in May this year and fell by 4.2 per cent in July following a decline of 2.9 per cent in June. Over the three months to July this year multi-year sales increased by 8.3 per cent, but it was the strength of the May result that drove the quarterly outcome.

In the month of July 2015 detached house sales increased by 4.2 per cent in New South Wales. Detached house sales fell by 2.3 per cent in Victoria and by 4.9 per cent in Western Australia. Sales were close to flat for the month in Queensland and South Australia.