Aussie Home Sales slump 4.4%

New home sales fall in May
Sydney Morning Herald - June 26th, 2007

New home sales fell in May as the cost of building continued to turn buyers away amid low home affordability, national figures show.

Housing Industry Association (HIA) figures released today show new home and unit sales amongst Australia's largest builders and developers dropped 4.4 per cent to 8,387 dwellings.

HIA chief economist Harley Dale said new housing activity was not improving alongside strengthening housing activity.

While sales were moderately higher over the three months to May, the level was still 10 per cent lower than the three months to May 2006.

"The cost of building a new house in Australia is extremely competitive on the world stage," Mr Dale said.

"However, taxes and charges on new house and land packages together with the cost of red-tape and the planning maze adds unnecessarily to the cost of a new house."

The survey found that low housing affordability continued to stifle the chance of a housing recovery.

Private new detached house sales fell by 6.9 per cent in May, while the sale of multi-units increased by 14 per cent.