From the HIA:
The monthly HIA survey of Australia’s largest volume builders reveals that total new home sales fell for a second consecutive month in May 2016. Total seasonally-adjusted new home sales declined by 4.4 per cent in May 2016 following a 4.7 per cent fall in April 2016. The sale of detached houses fell by 6.7 per cent May. ‘Multiunit’ sales recorded a bounce of 4.9 per cent and are again trending higher, albeit to a smaller extent compared to the equivalent building approvals profile.
The downward trend for new home sales is nothing to be alarmed about – it is a relatively gentle decline from the peak (reached in April 2015) at this stage. There is a cyclical downturn ahead for new residential construction activity itself, as new homes sales signal, but the early pull-back will be mild by historical standards. We are comfortable with this short term outlook based on HIA New Home Sales, ABS Building Approvals, ABS Housing Finance, and other indicators such as the AiG-HIA Performance of Construction Index (PCI).
