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A survey of Australia’s largest home builders shows the year ended well for new home sales after the sector went through a significant dip.
The Housing Industry Association New Homes Sales Report shows new home sales hit a two-year low in October last year, but recovered in November and December.
HIA chief economist Harley Dale said the late 2016 results were strong for the sales of multi-units, while detached house sales remained only in “reasonable” shape.
New detached house sales fell by 2.3 per cent in the December 2016 quarter, while the sale of multi-units grew by 3.2 per cent.
Despite the recovery, Mr Dale said he is expecting a down cycle to begin in 2017.
“The overall profile for both HIA new home sales and ABS building approvals is consistent with the first stage of the down cycle in new home commencements.”
Mr Dale added that new home sales and building approvals highlight the “large differences” in new home building conditions between the five mainland states.
Seasonally adjusted, new detached house sales increased in two out of five mainland states in December 2016, compared to four out of five states in November.
Detached house sales increased in December by 2.4 per cent in New South Wales and by 5.8 per cent in Victoria.
The monthly fall in detached house sales was 9.1 per cent in Queensland, 1.9 per cent in South Australia and 9 per cent in Western Australia.
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