AFTER a string of weak months, new home sales finished the year on a slightly more positive note with the HIA New Home Sales Report showing detached Victorian house sales increased by 7.3 percent in November.<\/p>\n
HIA Senior Economist Geordan Murray said that although these results are pleasing, new home sales were still 12.2 per cent lower than last year.<\/p>\n
\u201cDespite the monthly rise, the overall level of sales in November is well below the level 12 months previously and also below what had otherwise been typical for most of the period since 2014,\u201d Mr
\nMurray said.<\/p>\n
\u201cGiven the softening of the Sydney and Melbourne housing markets and the fact that the tight credit environment remains an issue for borrowers, we are not confident that the lift in sales in November marks the end of the downward trend seen throughout 2018.<\/p>\n
\u201cThe tighter lending environment came about as banks adjusted to the more restrictive lending practices demanded
\nby APRA and also responded to the heightened scrutiny stemming from the Hayne Royal Commission.<\/p>\n
\u201cThe credit squeeze first started to bite the investor side of the market in 2017 and more recently the effect of this\u00a0squeeze has spilled over into the owneroccupier market.<\/p>\n
\u201cTighter credit conditions facing owneroccupier borrowers are now weighing on the detached house building market,
\nillustrated clearly by the reduced levels of new home sales and building approvals.<\/p>\n
\u201cWith the Royal Commission scheduled to release recommendations early next year we see a risk that the credit squeeze
\nmay drag on into 2019 with the new home market already looking vulnerable, policy makers will need to proceed
\ncautiously when responding to the Commission\u2019s recommendations.\u201d<\/p>\n
The monthly rise was geographically widespread: sales increased in Victoria (7.3 per cent); Queensland (2.1 per
\ncent); South Australia (7.4 per cent); and Western Australia (2.2 per cent).<\/p>\n
New South Wales was the lone state where sales declined during the month (down by 3.3 per cent).<\/p>\n","protected":false},"excerpt":{"rendered":"
AFTER a string of weak months, new home sales finished the year on a slightly more positive note with the HIA New Home Sales Report showing detached Victorian house sales increased by 7.3 percent in November. HIA Senior Economist Geordan Murray said that although these results are pleasing, new home sales were still 12.2 per […]<\/p>\n