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{{propApi.successMessage}} {{region}} Change locationNew home buyers defy rate rises
New home buyers defy rate rises
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The HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – is a leading indicator of future detached home construction.
“New home sales grew by 1.9 per cent in June compared to the previous month,” added Mr Devitt.
“This increase in the month of June puts sales in June quarter higher by 11.1 per cent compared to the same quarter last year.
“There is a record number of homes currently under construction, a large number of projects approved but not commenced and strong sales to the end of June. This will ensure that home building activity and demand for skilled workers will remain strong throughout 2023.
“Those households purchasing a home in June likely began the process before the first cash rate increase in May.
“The rapid increase in the cost of building a new home will be compounded by the adverse impact of the rise in borrowing costs.
“The industry is noticing a slowing in the number of groups visiting display sites in recent weeks which could result in fewer new home sales in the second half of 2022,” concluded Mr Devitt.
Queensland and Victoria drove the national increase in June, with sales in these states increasing by 6.7 per cent and 4.2 per cent respectively. New South Wales was stable in the month (-0.0 per cent), while declines were seen in Western Australia (-1.5 per cent) and South Australia (-11.0 per cent).
For the three months to June 2022, compared to the same quarter in the previous year, sales in Queensland were up by 40.9 per cent, followed by Victoria (+15.7 per cent) and South Australia (+11.8 per cent). Declines were seen over this period in New South Wales (-1.9 per cent) and Western Australia (-8.1 per cent).
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