Evidence continues to mount that Australians are not responding to interest rate cuts with a stampede into housing. HIA new home sale for December was just released and gave back most November’s gains:
The HIA – JELD-WEN New Home Sales Report, based on a survey of Australia’s 100 largest builders, showed a decline of 4.9 per cent in total seasonally adjusted new home sales in December 2011. “New home sales were essentially flat over the December 2011 quarter, inching up by 0.2 per cent.Meanwhile, building approvals will record a fall for the December quarter and new home loans will likely do the same,” said HIA Chief Economist, Dr Harley Dale. “Leading new housing indicators therefore ended 2011 on a weak note.” Detached house sales fell by 7.7 per cent in December 2011, but rose by 2.1 per cent over the quarter. Multi-unit sales jumped by 29.4 per cent in the final month of last year, but dropped by 15.7 per cent over the December 2011 quarter.
The volume of detached house sales declined in three out of five mainland states in December 2011,falling by 4.0 per cent in New South Wales, 10.5 per cent in Victoria, and 20.5 per cent in Queensland. Sales increased by 12.0 per cent in South Australia and by 6.8 per cent in Western Australia.
2011-12 NHSS National Media Release
