New home sales in Australia decreased for the second consecutive month in May, the Housing Industry Association said on Wednesday.
Total home sales dropped a seasonally adjusted 4.4 percent sequentially in May, slower than the 4.7 percent decline in April.
Detached home sales slipped 6.7 percent over the month, while sales of multi units climbed by 4.9 percent.
“There is nothing alarming to a reversal in the trend for New Home Sales,” HIA Chief Economist, Dr Harley Dale, said.
“There is a cyclical downturn ahead for new residential construction activity, as new home sales signal, but the early pull-back will be mild by historical standards.”
“We remain of the view that a decline in new dwelling commencements will gather momentum in 2016/17 and 2017/18, following four years of growth which has delivered enormous benefits to the broader Australian economy.”
The material has been provided by InstaForex Company – www.instaforex.com