New homes & units sold among largest builders & developers in Australia fell by 3 % and Sales of new homes fell for the 5th time in 6 months as interest rates continue to skyrocket.
Sales of new homes fell for the 5th time in 6 months as interest rates continue to skyrocket. As per HIA's (Housing Industry Association) latest survey, new homes & units sold among largest builders & developers in Australia fell by 3 % to reach 7,342 dwellings in September, a new low for 21 months. In August, there was an increase of 2.05 % with 7,670 homes.
As per association, the trend will remain uncertain for the remainder of financial year. High interest rates & concerns over further hike were discouraging people to buy new homes. Moreover, labor shortages will see lesser housing starts for the financial year.
"Lack of skilled labor, lack of supply & higher interest rates is affecting Australian Housing Sector. Borrowing by businesses & consumers has considerably slowed down. Rents are rising & investors are concerned about another interest hike," said an analyst at RNCOS, author of "Opportunities in Indian Housing Sector (2006-2007)".
New homes sold in South Australia declined by 2,6 % to reach 359 dwellings. Despite growth in Western Australia lifting sales by 3 % in August, sales of new homes declined by over 25 % in last 6 months.
The survey, compiled from leading hundred residential builders, revealed that homes sold in Queensland dropped by 22 %, 15 % in NSW (New South Wales), 6 % for Western Australia & 3 % for Southern Australia. In contrast, Victoria sales saw an increase and jumped by 23 %.
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