According to the latest HIA – JELD-WEN New Home Sales Report, sales of new homes fell further during the month of September with sales of detached new dwellings being at the lowest monthly level for almost 11 years.
The number of new homes sold in the month of September fell by 3.5 per cent to be down by 14.0 per cent over the September quarter.
September figures are an indication of a slow demise of the Australian construction industry with fewer home being built and less demand from buyers of new properties.
We can only hope that the RBA decision yesterday to cut interest rates and subsequently the commitment from other lenders to pass the savings on to home owners and investors will generate more activity in the property market and improve the flagging demand for new homes.
Detached house sales fell by 3.3 per cent in the month of September 2011 to be down by 15.3 per cent over the September quarter.
Sales of multi-units fell by 5.5 per cent in September.
“The volume of detached house sales improved in Queensland with a rise of 5.7 per cent in September, but sales fell in each of the other four mainland states,” Mr Harvey said.
“Victoria posted the largest monthly fall with sales declining by 6.6 per cent in September.”
Now that home loans and construction loans will be cheaper we may see a slow turnaround in demand and better statistics in months to come.