New home sales make dramatic U-turn south

The Housing Industry Association (HIA) has today reported a plunge in the volume of new house sales in May, the weakest since July 2008.

Sales fell 6.4 percent in May after reporting a rise of 6.2 percent in April.

The falls in new home sales follow mortgage approvals sliding for seven straight months, the weakest since March 2001. Auction clearance rates have also taken a turn for the worst, dropping under 60% in Melbourne and Sydney.

ยป New home sales plunge in May – The Age, 30th June 2010.




3 Comments

  1. nope prices are still high in the bottom end of the market $400-600k. they might be dropping for the Mcmansions $1million+ ?

  2. AverageBloke, its not about the asking price of the homes at this point, its that the amout of people willing to buy is drying up! This means one thing and thats falling prices will follow soon as too much volume will build up in the market. please try to understand this simple fact!

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