Trends in housing
- The release of the building approvals and home price data is an opportune time to focus on the latest trends in the housing market. Dwelling approvals, new home sales and home prices all fell again in the
latest month, raising hopes that the Reserve Bank will delay any rate hike for at least a month. - Amongst the key trends: there are fresh doubts about the apparent under-supply of homes in Australia –in fact non-NSW housing approvals were at record highs in the year to August; Victoria is the clear leader in home building while NSW activity is again slipping back towards record lows; home prices have softened in response to a slowdown in demand for property; and buyers are switching from free-standing homes to units and townhouses in many states and territories.
- Exacerbating the decline in housing demand has been the shortsighted reduction in migrant numbers by the Federal Government. The slowdown in migrant inflows over the past year has been the biggest ever recorded.