CANBERRA: New home sales picked up in August, pushing the total to back towards the recent peak as sales of detached houses increased 3.5 per cent. Total sales of private houses and units rose to 8,014 in August, up 2.3 per cent from 7,836 a month earlier, the Housing Industry Association’s latest New Home Sales report showed. It was the highest figure since April’s 8,120.
The figures, which also reflected a 1.7 per cent decline in sales of units and apartments do little to alter the picture of a housing market that has topped out the current cycle and is easing back. While higher, the detached house sales figures are still well below the peak of 6,543 reached in April last year.
‘We’re forecasting total dwelling commencements to ease back from what we expect to have been the peak level in the financial year just passed, but still remain elevated,” HIA economist, Diwa Hopkins said.
The annual total of new homes approved grew in August at its slowest pace in almost a year, official figures earlier this week showed. Homes approved by local planning authorities grew just 0.4 per cent to a new seasonally adjusted high of 226,415.
Economists say that as long as interest rates stay low and demand high, the strong level of sales and construction will not collapse. Detached house sales rose in every mainland state except WA, where they fell 1.4 per cent, the HIA figures show.
Total apartment sales fell to 1,807 in August from 1,838 a month earlier. It was the lowest figure since February, when they totalled 1,634, according to the HIA. “It is becoming increasingly apparent that total sales activity has already peaked this year, but today’s update shows that sales are remaining elevated,” Ms Hopkins said.
