The latest HIA New Home Sales report has shown that despite a sales rebound by 7.3% in August, new home sales in the winter months are still 4.6% below the level recorded a year ago.

HIA senior economist Geordan Murray says that while there may have been some positive developments in the broader housing market since mid-year, the latest figures show that new home builders are still feeling the winter chill.

The Australian Bureau of Statistics has also released its monthly building approvals data for all states and territories.

Geordan says: “The ABS figures showed that detached house approvals in August decreased by 2.6% compared with July, and approvals throughout the three months to August were down by 16% compared to the level a year ago.”

Apartment approvals in August remained low compared to recent years but multi unit approvals saw a modest lift of 1.5%. Approvals in the three months to August have dropped to a level 36% below the level a year ago.

Geordan says: “The tail end of the housing downturn continues to unfold. Throughout the remainder of 2019 the new home market should start to reflect the lower interest rate environment following the RBA’s cuts to the official cash rate. The modest lift in home prices over recent months has led to improved confidence and is likely to result in increased activity among investors.”

He believes that these factors, together, should assist the housing market in the back end of 2019.

Building approvals in August 2019 were as follows: New South Wales (increase of 10.6%); Victoria (increase of 6.5%); Tasmania (increase of 4.4%); Western Australia (increase of 4.2%); Queensland (decrease of 21.4%); South Australia (decrease of 29.7%); Northern Territory (decrease of 8.7%); and ACT (decrease of 27.7%).