The hopes of a real estate recovery took a blow today with figures released by the Housing Industry Association (HIA) showing the number of new home sales fell 5.6 per cent in July 2012, following three consecutive rises from April through to June.
ABS Census data released in the first week of July showed Australia had a substantial oversupply of 341,000 homes after incorrect assumptions were made that the composition of households would continue to follow normal trend after the GFC. Prior to July 2012, it was assumed Australia suffered from an acute shortage of 228,000 homes.
Both the sales of new and used homes are suffering from a significant land bubble in Australia as further explained in Macro Business today.
» New Home Sales off to a weak start in 12/13 – Housing Industry Association, 28th August 2012.