SYDNEY - Sales of new homes in Australia slid in April, more than reversing the previous month's gains and suggesting the recovery in housing was fitful at best, the Housing Industry Association (HIA) said today.
Total sales fell 6.5 per cent in April to 9455 new homes. Sales of new
houses dropped by 6.9 per cent, while sales in the multi-unit sector fell 3.8 per cent.
HIA's new home sales survey is compiled from a sample of the largest 100 residential builders in Australia and is regarded as a leading indicator of new housing activity.
The pullback in sales came even before Australia's central bank raised official interest rates to 5.75 per cent on May 3.
"While it's still early days, it's fairly obvious that the latest rate hike at a time of near record-low housing affordability will have a dampening influence on the supply of new housing stock, which will keep considerable pressure on rental markets through to the end of the year," said Simmon Tennent, HIA's executive director of Housing and Economics.
The survey found detached house sales decreased in all states, falling by 13.3 per cent in Victoria, 5.6 per cent in New South Wales, 4.9 per cent in South Australia, 4.7 per cent in Queensland, and 2.6 per cent in Western Australia.
- REUTERS
