Australia New Home Sales Fall 4.3% in May

Sales of new homes in Australia fell in May for the first time in five months, possibly a sign that the housing market may have peaked in this cycle, an industry survey showed on Monday.

The Housing Industry Association (HIA) said its survey of large builders showed sales of private sector new homes fell 4.3 percent in May from April.  Still, sales grew by 3.8 percent over the three months to May to be up 21.0 percent compared with the same period a year ago.

Multi-unit sales dropped 16.1 percent in May, while detached house sales slipped 2.2 percent.  Record-low interest rates have led to a marked pickup in home prices and clearance rates at auctions, while approvals to build new homes are trending higher.

Reuters

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