New home sales "hold up well" down under

New home sales are holding up Down Under, according to the Housing Industry Association. The HIA's latest survey shows that sales volumes are off their peak but are "holding up relatively well", with a decline of 3 per cent in October 2015. Detached house sales fell by 4.1 per cent while the sale of 'multi-units' notched up a 1.0 per cent gain.

"New home sales are not far below their historically high peak, consistent with only a moderate decline in dwelling commencements in the short term," says HIA Chief Economist, Dr Harley Dale. “Within the aggregate profile, detached house sales are up over the three months to October in all three eastern seaboard states."

"New dwelling commencements have increased over three consecutive years to a record high. Leading indicators like new home sales and ABS building approvals suggest a fourth healthy year in 2015/16," adds Dale. "That's an impressive outlook which will remain of considerable value for the wider
Australian economy, given that a peak in new housing tends to be immediately followed by a sharp decline."