According to the latest Housing Industry Association (HIA) report, new home construction slowed significantly in major states – with the exception of Western Australia – in July.
Overall, new home sales fell 20.5% over the month.
HIA economist Tom Devitt said the foreclosure episodes that occurred across the country were a major drag on demand during the month.
"With lockdowns in several states restricting trade and eroding confidence, it's no surprise that fewer people were able to visit the showrooms," Mr. Devitt said.
Over the month, only WA saw new home sales growth of 8.5%.
On the other hand, significant declines were recorded in Victoria (32.2%), South Australia (29.4%), Queensland (25.4%) and New Wales from the South (14.8%).
However, on a three-month basis, new home sales remained strong, although slightly lower than last year, supported by HomeBuilder.
It should also be noted that new home sales in the quarter through July were 4.3% higher than in the same period in 2018, which was considered to be a strong year for housing construction.
“This strong level of sales after HomeBuilder ended suggests that demand for single-family homes remains strong despite the poor performance in July,” Mr. Devitt said.
“Low interest rates and changes in consumer preference for housing location were the main drivers of business after HomeBuilder ended. "
During the three-month period, Washington State, New South Wales and Victoria all reported surges in new home sales, up 34%, 12.5% ??and 10.9%, respectively.
The numbers were still down, however, in South Australia and Queensland, which saw three-month sales declines of 11.5% and 30.2%, respectively.
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