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It is expected that in Aussies will soon see a flood of new houses, as the new home sales continue to fall, whereas new home construction continue to rise.
The property prices everywhere is now down expect Sydeny, which is also expected to flatten soon. New data from the Housing Industry Association shows new home sales slumped for a third straight month in November, driven by a sharp decline in apartment sales.
Also as per the data released by Australia Bureau of Statistics shows that new dwelling commencements reached a fresh high of more than 55,000 nationally in the September 2015 quarter, and surged more than 15 per cent in the year to September.
HIA chief economist Harley Dale said., “A confluence of factors is driving a decline in leading indicators of new home construction. The lagged effect of slowing population growth, an up-tick in variable mortgage costs, over-reach on the part of APRA’s credit controls (aimed at reducing investor buying), and an easing in property price growth in Sydney and Melbourne are all in play”.
He further added, “In a welcome sign for the short-term residential outlook, leading indicators such as HIA’s new home sales didn’t fall sharply in the second half of 2015,” Dr Dale added. “There is, however, a steeper descent apparent for the ‘multi-unit’ market compared to detached houses”.
News Source: https://thenewdaily.com.au/money/2016/01/21/property-market-reaches-turning-point/