New home sales dropped by 7.2 per cent in July 2008 according to figures released by HIA this morning, reinforcing evidence that home building conditions hit the wall in early July.
“Budgeted sales levels are well down on expectations and that runs the clear risk of the next step being a shedding of labour in the industry,” said HIA chief economist Harley Dale.
HIA’s New Home Sales Report showed a 7.5 per cent dip in detached house sales in July. Multi-unit sales fell by 5.2 per cent.
“What is a very weak update on sales volumes reinforces industry feedback which, at the time, pointed to an abrupt halt to new home enquiries and activity in early July,” Mr Dale said.
“The imminent move to lower interest rates is a welcome first step to a much needed home building recovery, but the delay to a tangible boost to construction activity will be significant,” said Mr Dale.
In the month of July new home sales fell by 24.5 per cent in Western Australia and sales were down by 11.7 per cent in New South Wales, 11.2 per cent in South Australia, and 7.2 per cent in Victoria.
Sales however increased by 13.4 per cent in Queensland, the first rise in six months.Published: 29-08-08
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