New home sales have hit their lowest level since October 2013, with both apartment and house sectors impacted.
The latest HIA New Home Sales Report for June shows that new home sales fell by 6.9 per cent compared with the previous month, to be 11.9 per cent lower than the same period last year.
New dwelling commencements are now predicted to continue easing until late 2018.
HIA Senior Economist Shane Garrett says that the reduction in sales of both detached houses and multi-units during the month of June continues the trend underway since sales peaked in early 2015.
“The fall in sales needs to be considered against the backdrop of residential building coming off a record peak of activity in 2016. We project that residential building will still be operating at a historically high level,” Garrett says.
The reduction in new home sales during June 2017 comprised a 5.8 per cent reduction in new detached house sales and a 10.7 per cent fall in new multi-unit sales.
There were considerable differences in sales in June around the states with new detached house sales rising both in Victoria (up 4.1 per cent) and Western Australia (21.1 per cent). However, sales fell in New South Wales (down 9.7 per cent), Queensland (29.3 per cent) and South Australia (23.7 per cent) during the month.