New home sales fall again
New home sales fell by -7.2 per cent in March, and have effectively been cut in half since the first quarter of 2022.
With cancellation rates now above 30 per cent, many builders are reporting "negative sales" over recent months according to the Housing Industry Association:
Source: HIA
In New South Wales, new home sales have fallen by more than three-quarters from a year earlier, portending a dire shortage of properties in Sydney as immigration ramps up.
Queensland and Victoria aren't faring much better, to be fair.
Source: HIA
With more and more development projects being scrapped, Australia is heading for an unprecedented housing shortage.
Due to the "potential for further interest rate rises" - and for financial stability purposes - a record 300 basis points lending assessment buffer remains in place, despite financial markets pricing something rather different.
With so many builders and developers now collapsing it's hard to imagine anyone rushing out to buy a new home until the tight financing conditions are removed.
