Victoria is proving to be a drag on already weak housing sales numbers, according to a recently released report.
The HIA - JELD-WEN New Home Sales report has shown a 7.3% seasonally adjusted decline in new home sales for January 2012.
HIA chief economist Harley Dale said weak numbers across the nation were exacerbated by a sharp 19.6% decline in sales in Victoria. He commented that the fall puts Victoria in a position to which the state has been unaccustomed.
"Victoria for a long time propped up new home building in Australia and now the reverse is occurring. New home sales, along with other leading housing indicators, are showing that other large markets in Australia are not filling the void in 2011/12," Dale said.
The HIA called on federal and state governments to implement tax reform in the home building sector, arguing it would "embolden" households to build.
"It's a no-brainer," Dale claimed.
How are declining new home sale numbers affeting the property market? Join the debate on our property investment forum.
Hot competition for rentals in Vic regions
Rate drops unlikely til May as RBA sees no US-style crash
Tomorrow’s boom suburbs to be revealed at investor forum
Do you have more than $120k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out