New home sales drop

Submitted 9/01/2009

Migration for Business Growth

Sales of new homes declined in November last year espite the interest cuts and  an increase in the first home buyer's grant.

The Housing Industry Association's survey for November revealed that a slowing economy and tougher access to credit led investors to postpone purchase of homes in the second half of 2008.

Sales of new homes fell by 1.1 per cent in November after a 3.1 per cent rise the month before.

The Housing Industry Association's report was compiled from a samply of the largest 100 residential builders. Sales of new detached houses fell by 0.4 per cent in November after a 5.2 per cent rise in October.