Australian new home sales continue to slide

Sales of new homes in Australia continued to slide in November 2015, according to the Housing Industry Association.

"A confluence of factors is driving a decline in leading indicators of new home construction. The lagged effect of slowing population growth, an up-tick in variable mortgage costs, over-reach on the part of APRA’s credit controls, and an easing in property price growth in Sydney and Melbourne are all in play,"
says HIA Chief Economist, Dr Harley Dale, noting that the 2.7 per cent monthly decline is the third in a row.

"In a welcome sign for the short term residential outlook, leading indicators such as HIA’s new home sales didn’t fall sharply in the second half of 2015," adds Dale. "There is, however, a steeper descent apparent for the ‘multi-unit’ market compared to detached houses."