Weak new home sales could spark buyer interest

By webmaster

Investors that have the means to buy or build a new home should do so now, according to the Housing Industry Association (HIA).

The latest HIA - JELD-WEN New Home Sales Report found, the number of new homes sold in July 2011 dropped by eight per cent following a decline of 8.7 per cent in June.

Detached house sales fell by nine per cent in the month of July 2011 while sales of multi-units increased by one per cent.

“The July sales result reinforces the marked deterioration in new home building conditions that is so glaring in mid-2011,” HIA chief economist Harley Dale said.

“The weak environment is actually good news for new home buyers. A competitive building market, less pressure on skilled trades, and steady interest rates combine to mean that if you're in a financially sound position to do so, now is a particularly good time to build a new home.”

CommSec economist Savanth Sebastian said investors could be enticed into the property market by strong population growth and low rental vacancy rates.

“While homes sales are weak it is not all bad news as there are good reasons for home building to increase over the medium term,” Mr Sebastian said.

“The rental market is still tight and population growth is healthy. And with the labour market remaining strong, investor housing demand is likely to pick up pace towards the end of 2011 and early into 2012 – provided the Reserve Bank remains on the interest rate sidelines .”

Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
BLUE BAY 49.18%
Weak new home sales could spark buyer interest
SPI logo