According to statistics from HIA, new home sales have seen their biggest monthly decline in five years, whereas home prices overall are continuing to come down. First Home buyers who were previously very active in the purchase of new homes are deserting the market, with investors being the main purchasers of housing today. The new lending rules introduced through the NCC make it very difficult for First Home buyer to qualify for home loans and therefore enter the property market.
ABS is reporting that median house prices across all Australian capital cities declined by 1.9% in the year to the June quarter.
Perth and Brisbane experienced the largest year-on-year decline, falling 4.1% and 3.6% respectively. Hobart and Canberra were the only capitals to see year-on-year improvement.
New building approvals fell 3.5% in June, following on a 6.3% decline in May. If this trend continues, there will be serious repercussions across every sector of the Australian economy.