New home sales failed to fire at the start of the second quarter, new data has found.
According to the latest HIA - JELD-WEN New Home Sales Report, a survey of Australia’s major residential builders, the number of new homes sold limped 0.2 per cent higher in April 2011.
Detached house sales inched up by 0.4 per cent with increases in New South Wales and Victoria, while the sale of multi-units posted a third consecutive decline - falling 2 per cent.
HIA chief economist Harley Dale said the new home building industry was struggling in 2011, and small and medium sized enterprises were feeling the pain.
“The new home building industry is struggling under the weight of excessive taxation and regulation, a stalled housing supply reform process, and uncertainty over interest rates,” he said.
“An industry kick-start is required together with a reinvigoration of the reform process.
“Over 2011 to date new detached house sales are running at a volume 22 per cent lower than the long term average, while new multi-unit sales are down by over half. That profile is an unfortunate indictment of the weak new home building conditions prevalent in 2011 amidst a growing housing shortage, but it’s nothing compared to what we’ll see if another rate hike bullet is fired.”