Two year low for new home sales: Pete Wargent

New home sales declined by 8.5 percent in October to their lowest level in two years.

Sales were down for both detached houses (-8.2 percent) and multi-units (-9.2 percent).

The drop was led by Victoria which saw a 20 percent decline in detached house sales.

Click to enlarge

 

Source: HIA

 

New home sales are now 13 percent below their peak in April. 

 

The Housing Industry Association (HIA) sees this as consistent with its forecast of housing starts declining to 172,000 by 2018/19, driven by a substantial drop in apartments, which is fair enough.

 

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His latest book is Four Green Houses and a Red Hotel.