Australian new home sales displayed minimal increase in April
A recent survey discloses that the Australian new home sales show indication of falling to levels during the global financial crisis as it currently appears flat.
The number of new homes sold increased by a seasonally adjusted 0.2 per cent in April. This was included in the latest Housing Industry Association-JELD-WEN New Home Sales Report, says the Herald Sun.
Meanwhile, detached house sales increased by a mere 0.4 per cent. Sales of multi-units fell by 2 per cent, to mark a third consecutive monthly decline.
HIA reported, "When you add together the risk of further interest rate hikes in 2011, a cautious and nervous household sector ... there isn't much wriggle room to avoid residential construction once again plumbing the depths endured during the GFC."
Harley Dale, HIA chief economist explained the data showed detached house sales were running at a volume 22 per cent lower than the long-term average, while new multi-unit sales were down by more than half.
"That profile is an unfortunate indictment of the weak new home building conditions prevalent in 2011, amidst a growing housing shortage, but it's nothing compared to what we'll see if another rate hike bullet is fired," Dale added.
In the states of NSW and Victoria, the detached new house sales had increased. The survey found a 7.8 per cent increase in NSW and a 2.2 per cent increase in Victoria.
On the contrary, Queensland experienced a 1.5 per cent fall on the detached new house sales. The latter was down by 0.5 per cent in South Australia and 10.3 per cent in Western Australia.