New home sales twitch

From the HIA:

New home sales crept up by 0.7 per cent in May 2012, suggesting interest rate cuts are yet to have a widespread impact, said the Housing Industry Association, the voice of Australia’s residential building industry.

…In May 2012 the number of seasonally adjusted new detached house sales increased by 3.9 per cent in Victoria. Detached house sales fell by 6.3 per cent in Queensland and were down by 5.5 per cent in New South Wales, 4.7 per cent in Western Australia, and 1.5 per cent in South Australia.

Another poor result, especially when you consider as well that Victoria is pulling its first home buyer grant at the end of this month. That boosted sales last month by 17% in the state but not much more this and sales are still languishing well below historic averages.

I really can’t see a turnaround in sales anywhere until established prices stabilise.

2012-05 NHSS National Media Release

David Llewellyn-Smith
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Comments

  1. This isn’t the reason behind the AUD surge though is it? It appears to be spiking on no news at all. And this doesn’t seem to be good news so what is it then?

    I can’t wait for the Monday disappointment…

  2. anonysubscribe

    why don’t the HIA admit they got it wrong when they scream for the RBA and the government to prostitute the nation’s wealth so they can rise to the occassion and ensnare buyers who will sell their souls to these devils in black undertaker suits waiting to bankrupt and bury us in legal ‘red tape’ worse than any government’s public policy safeguards against venal business self-interest?