Home News First signs of rate rise impact: new home sales

First signs of rate rise impact: new home sales

Font size :
As one of the first regular round of industry numbers to be released following the rate rise, the outcome does not bode well for a demand side recovery that analysts had anticipated would kick off later this year. "This is a very untimely situation to be in given there is already insufficient supply of housing stock to satisfy demand," said chief economist of the HIA, Harley Dale. While the sales of units remained fairly stable during May, dipping slightly by a mere 2.9%, the overall result was adversely affected by a nosedive in the sale of new homes, which were down 11% in the month. Dale is doubtful of the ability for a recovery in sentiment -which would indicate a willingness of investors to return - in the months ahead. "Sales volumes are likely to be subdued in the months ahead as higher interest rates and concern over a possible further hike exert a negative impact on the supply of new housing," he said. Around the nation, house sales fell by 17.8% in New South Wales and by 13.9% in Queensland, 12.2% in Western Australia and 6.2% in South Australia. In contrast, sales of new detached houses in Victoria nudged up 4.1%.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

Many millennials are relying on an inheritance to buy homes Many millennials are relying on an inheritance to buy homes

Lawyers are seeing cases where disputes over inheritance have created tensions within families Read more

Gen Y homeowners fearful of interest rate rises Gen Y homeowners fearful of interest rate rises Many are worried rising interest rates will negatively impact their cost of living expenses, according to a new survey ... Read more

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies ... Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords