New home sales at 11-year low: HIA

September sales of new homes have declined to levels last seen in December 2000, according to the latest HIA - JELD-WEN New Home Sales Report. 

The number of new homes sold in the month of September fell by 3.5% to about 5,000, down by 14% over the September quarter, according to the HIA’s survey of major residential builders. 

Detached house sales fell by 3.3% in September and are down 15.3% over the September quarter. Sales of multi-units fell by 5.5% in September.

 

On the back of the introduction of the $10,00o state Building Boost, the volume of detached house sales increased by 5.7% in Queensland in September. 

However, sales fell in all of the other four mainland states, with Victoria posting the largest monthly fall, with sales declining by 6.6% in September. 

Detached house sales fell by 4.7% in New South Wales, 5.9% in South Australia, and 3.5% in Western Australia.

The figures follow ABS building approval figures for August – a leading indicating of future construction – which revealed a 1% decline in private sector house approvals to just over 7,500. 

“The September figures highlight the present soft conditions facing new home building and reinforce the importance that the RBA board calls it right today by cutting interest rates,” says HIA acting chief economist Andrew Harvey. 

“Monetary policy is arguably the most powerful economic tool in modern open economies but interest rate cuts still take time to boost the economy – so any further deferral of the decision to cut rates would be the wrong move,” he adds.