According to a new study, new home sales have been declining throughout the year, and in recent months they have also slowed due to the credit crunch.
The Report on New Housing Sales from the Housing Industry Association (HIA), which is a monthly survey of the largest homebuilders by volume in the five largest states , showed that the number of sales during the three-month period ending in October is down 10% from the same time in 2017.
Geordan Murray, Acting Chief Economist of the HIA, further revealed that the constraints of access to finance are also damaging to other market indicators.
"In the established home market, the credit crunch has resulted in a significant decline in transaction volumes and a fall in prices. In the new housing market, we are seeing less and less new construction, "he said.
Murray stresses the role of the Australian Prudential Regulatory Authority (APRA) in implementing stricter regulations, which he says are becoming a problem for the industry. ; housing.
"When the APRA imposed stricter rules on mortgage lenders at the peak of the cycle, they aimed to prevent any growth of risky credit before it became a problem. To that extent, the extra supervision has done its job, but the tighter credit environment is now holding back homebuilding activities, "he said.
In a broader perspective, HIA said the GDP results for the coming quarter should show that the slowdown in housing construction has dampened economic growth.
"With the Hayne Royal Commission to publish its findings early next year, the lending climate is likely to be disrupted in 2019. Any further tightening of the housing loan sector is likely to become a destabilizing on the housing market. ", Said Murray.
Sales of private single-detached homes rose 4.9% and 2.5% in October, respectively in Victoria and Queensland.
New home sales in all other mainland states fell. Sales in New South Wales decreased 4.9%. South Australia recorded a decrease of 5.6%, while Western Australia recorded a decrease of 10.7%.
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