Housing approvals figures good news for new home builders
Wednesday, 17 August 2016 8:15 PM
According to the Housing Industry Association (HIA) New Home Sales Report, as outlined in a HIA release from August 1, brand-new home sales finished 2015/16 higher than the previous year.
While it looked to be a year of decline around the country, June bounced back with an 8.2 per cent increase over May, and it bumped the total number up. Dr Harley Dale, the chief economist at HIA, suggests that this shows the resilience of the home building sector, and is good news for anyone looking to start their own home building journey.
Why are new home sales good news for home builders?
Building a new home requires land. Without land, you won't have anywhere to lay the foundations of your home design from G.J. Gardner Homes. Housing approval is also a requirement for your project to start. A separate HIA media release from August 2 points out that new dwelling approvals declined 2.9 per cent through June 2016. This might seem bad for anyone looking to build a home, however it means that there are fewer people in the market for new land. That could mean less competition for you to snap up a patch of real estate for yourself.
"Comparing the June quarter this year to the same period last year, detached house sales are down very sharply in South Australia (-21.4 per cent) and in Western Australia (-27.5 per cent), yet sales are up by 17 per cent in Victoria and by 7.1 per cent in Queensland," said Dr Dale.
New South Wales also recorded a fall of 7.3 per cent. These are figures for new homes, not the sale of land, and it points to a trend that people are buying existing rather than building new.
Capitalising in the current market
The market is ripe for designing your own home.
With new home approvals pointing to a possible decline in people buying land, and new home sales showing that existing properties are preferred to building from scratch, the market is ripe for designing your own home.
Less competition for buying land means that you can potentially snap up a bargain. From that point, you can sort out the floor plan and design exactly how you want, and G.J. Gardner Homes will have you in your dream home in no time.
To talk more about what building a new home could mean for you and your family, get in touch with the G.J. Gardner Homes team today.