New home sales drop
New home sales fell 15.7 per cent over the 3 months to September, according to the HIA:
Source: HIA
The Chief Economist of the HIA said that interest rates are weighing on new home sales, leading to the weakest quarter since June 2020.
Lower borrowing capacity combined with the sharpest increase in home building costs in 50 years are expect to continue depressing new home sales into 2023 as the latest interest rate hikes flow through.
Media release from the HIA:
This echoes the AiG survey which showed house and apartment construction deeply in contractionary territory.
Supply looks set to slow just as the government is fast-tracking a couple of million visa applications.
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CoreLogic found that the deepest house price declines have been experienced in the most expensive suburbs.
Source: CoreLogic
The CoreLogic monthly chart pack showed that annual house rental value growth is now slowing, though unit rents continued to gather momentum as immigration returns.
Source: CoreLogic
Stock for sale remained 14.3 per cent below the 5-year average, with relatively few forced sellers around.
Source: CoreLogic
