New Home Sales Plummet as HomeBuilder Ends.
Sales of new homes fell by 54.4% in April 2021, following the end of the Federal Governments HomeBuilder program on the 31st of March.
The drop was expected as HomeBuilder – and a range of other factors, like a reduction in interest rates – resulted in the largest boom in new home sales in nearly 20 years. HIA economist Angela Lillicrap stated “A cooling in sales is to be expected as the grants available through the HomeBuilder program came to an end in March."
It should be noted that if 2021 sales are compared to 2019 – the last “normal” year – then sales are down only 2.7%.
Lillicrap added that “There is an unprecedented volume of building starts set to occur in 2021. HomeBuilder and lower interest rates have facilitated in a surge in demand for detached homes that ensures a record number of new detached homes will be built this year and in to 2022.”
Ms Lillicrap also stressed that the demographic shift of the population towards regional locations and the continuation of low interest rates will continue to drive demand for new homes in the months to come.
Source: HIA Media Release “New Home Sales Take an Autumn Dip”