Total seasonally adjusted new home sales fell by 4.0 per cent in September 2015 after a modest increase of 2.3 per cent the previous month. The result reflected a decline in both detached house sales (-3.6 per cent) and ‘multi-units’ (-5.3 per cent). The multi-unit segment incorporates semidetached style new housing sales, in addition to low, medium and high density unit sales.
The volume of new home sales has entered a modest trend decline in 2015. We are now officially calling the peak to the new home sales cycle as occurring in April this year. There has been no alarming drop-off in sales activity subsequently – the volume and trajectory of new home sales is consistent with HIA’s forecast for a very healthy year of new home construction in 2015/16.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
