Australian Home Sales Fall to 4 Year Low in July

Australian new home sales tumbled to a four-year low in July, driven by a sharp decline in apartment sales.

According to the Housing Industry Association (HIA), total sales fell by 3.7%, adding to the 6.9% fall recorded in June and now sit at the lowest level since August 2013.

The HIA said the decline was driven by a large 15.7% slide in apartment sales, another sign that attempts to limit investor activity in Australia’s housing market from regulators may be starting to bite.

While sales of detached housing fell by a smaller 0.4%, had it not been for a large spike Victoria, that too would have been an ugly reading.

Total sales in Australia’s fastest growing state jumped by 9.8%, offsetting large declines in South Australia (16.2%), Queensland (16.1%), Western Australia (9.1%) and New South Wales (5.2%) during the month.

The strong performance in Victoria may have been due to stamp duty concessions for first-home buyers that began on July 1.

Reflecting the weakness seen over the past two months, total sales volumes over the first seven months of the year were down 4.6% on the same period in 2016.

via Business Insider

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza