Figures released this week by the Housing Institute of Australia (HIA) have revealed that September saw a decrease in the number of new homes sold during the month.
According to the HIA’s latest New Home Sales Report, the number of new homes sold during September fell by 4%, with sales now 5.2% below the peak of 8,000 that occurred in April.
“The decline in total new home sales was reflected in both the detached and non-detached segments of the market in September 2015,” HIA economist Diwa Hopkins said.
“Following the peak level of sales that occurred in April this year, sales activity has trended lower only very modestly,” Hopkins said.
According to the HIA, the drop off has been exacerbated by restrictive credit policies, and while the number of new homes built this year is a record, it could have been higher had finance been easier to come by.
“A fresh record level of building activity during this financial year could have been achieved – and could have been of strong benefit to the broader domestic economy – but increasingly restrictive credit conditions are likely to curtail the boom in new home building,” Hopkins said.
“The deterioration in credit conditions is likely to weigh more heavily on new home building activity beyond 2015/16. We have therefore pared back our forecasts for activity over our forecast horizon beyond the end of the current financial year.”
During September detached house sales declined by 19.8% South Australia, 8.6% in Western Australia, 5.9% in Queensland and 0.5% in New South Wales.
In Victoria, detached house sales increased by 3.1%
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