New home sales started to lift in August following a weak July but there’s still an overall downward trend, according to Australia’s builders.
The Housing Industry Association (HIA) New Home Sales Report shows a 3.3% increase in new home sales in August.
“Despite the August bounce, we still hold the view that new home sales reached their peak for the cycle back in April this year,” says HIA Economist Diwa Hopkins.
However, the decline is modest.
“The result for August was driven primarily by a strong lift in the volatile multi-units sector where sales increased by 19.8%, taking this component of sales to its second highest level this cycle,” Hopkins says.
“Detached house sales didn’t fare quite so well, ticking up by only 0.5%, although this slight rise arrested a decline which stretched to three consecutive months.”
Both HIA New Home Sales and Australian Bureau of Statistics Building Approvals are displaying a moderate downward trend.
In the month of August, detached house sales increased by 11.1% in New South Wales and by 2% in Western Australia.
Detached house sales fell by 6.8% in South Australia, 6% in Victoria and 0.7% in Queensland.
Over the three months to August 2014 detached house sales decreased in each of the surveyed states, with the exception of NSW where sales increased by 0.4%.
Sales fell by 9.8% in Victoria, 4.6% in Western Australia, 4.4% in South Australia and by 3.2 p% in Queensland.
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