According to the HIA New Homes Sales Report, Victorian home prices have dropped to the lowest level since 2012.
There was a steady decline in new homes sales in Melbourne throughout 2018. In the final quarter of 2018 sales were reported to be 14.9% lower than they were the year before.
Senior Economist at the HIA, Geordan Murray, said that “While declining home prices in Sydney and Melbourne have made home buyers in these markets far more cautious, the ongoing challenges accessing finance that face many would-be home buyers across the rest of the country continue to weigh on new home sales.”
The decline in new homes sales was steady throughout last year, winding up with sales in December falling to their lowest levels since late 2012. Fortunately, there is still plenty of residential building work on the table due to residential developments secured in 2017 and 2018.
Murray warns that, “The slowdown in sales that occurred throughout 2018 shows that the pipeline of new work coming through during 2019 is set to be considerably weaker than we’ve seen in recent years. Home building activity on the ground is set to decline as the year progresses.”
We are no longer in the unsustainable boom phase of the last couple of years. This decline was inevitable given the unrealistic amount of sales that took place over this time. Ensure you are prepared for this change in the coming season, keep a close eye on your business operations and cash flow and get in touch if you want to stay ahead of this change and be equipped with the right tools.
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