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New home sales have already peaked despite bouncing back in August, according to the Housing Industry Association.
The association reported a monthly increase of 3.3 per cent in new home sales for August, based on a survey of Australia’s largest volume builders.
The rise was driven by a 19.8 per cent increase in multi-unit sales, with detached house sales up by only 0.5 per cent.
Detached house sales grew by 11.1 per cent in NSW and 2.0 per cent in Western Australia.
However, the other three surveyed states reported declines, with South Australia down 6.8 per cent, Victoria down 6.0 per cent and Queensland down 0.7 per cent.
“Despite the August bounce, we still hold the view that new home sales reached their peak for the cycle back in April this year,” the association said.
It also said there has been a “moderate downward trend” in new homebuilding.
“Current levels remain elevated by a historical standard, which is consistent with still healthy levels of new homebuilding throughout 2014/2015,” it added.
[Related: Good news and bad news for home sales]
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