Generous government incentives, cash rebates, flat screen televisions, motor vehicles, holidays and even cooking lessons have failed to prevent new home sales slumping 5.3 per cent in February according to data released today from the Housing Industry Association (HIA).
Volatile unit sales fell 11 per cent, while detached homes fell 4 per cent. Victoria lead the falls with detached new home sales plunging 13.7 per cent, while South Australia followed behind experiencing falls of 6.7 per cent in February.
The Sydney Morning Herald reports on comments from MacroBusiness economist Leith van Onselen indicating sales of detached new homes is now at the lowest point in the 16 year history of the HIA series.
» New home sales say no to recovery – Macrobusiness, 3rd April 2013.
» New home sales fell 5.3pc in February, says Housing Industry Association – The Australian, 3rd April 2013.
» New home sales hit 16-year low in February – The Sydney Morning Herald, 3rd April 2013.
This data proves that property speculators face one huge fundamental problem- there will soon be no one to sell to.
This is not going to end good at all. THEO I read your comments on the last thread. Just wait the day of reckoning is coming to Australia. I could be wrong but I think Australias GFC is going to be worse than Europe and the US GFC. Alot worse.
People on this Blog have been talking about the day of reckoning for years now and nothing much has changed. OK property prices have dipped a little in certain states, but for prices to go down significantly we would need a major shock to the economy and unemployment up a few percent.
The Govt knows that by reversing some of their policies such as Negative Gearing, 50% discount on CGT then things may change, but nobody has the guts to put themselves on the line and do this..
As long as the 16billionAUD AOFM keeps underwriting the banks and buying all their MBS, RMBS. The housing market will have a support underneath it. The RBA rate cuts are nothing, it is the encouragement of the current goverment to keep the punch bowel filled.
Our housing crash will come when Australian goverment debt is dumped and rates go up, banks will then have to withhold loans as the goverment writes down debt. Then we crash.
Till then.