New home sales decline for the third consecutive month
New home sales fell 3.7% in July, marking the third straight monthly decline. Higher interest rates and policy uncertainty are dampening consumer confidence in the new housing market.
New home sales dropped 3.7% in July 2024, the third consecutive monthly decline, signalling a cooling pipeline for residential construction.
Why are new home sales dropping and what does it mean for my trade business?
Builders and allied trades like plumbers, electricians, and carpenters face reduced workloads as fewer new homes are contracted. Less new work in the pipeline means tighter cash flow.
Key takeaways
- New home sales fell 3.7% in July, continuing a three-month downward trend.
- Higher interest rates are reducing buyer confidence and slowing new housing contracts.
- Policy uncertainty is adding to the slowdown, making forward planning harder for builders.
- Trades reliant on new residential construction may see fewer jobs in coming months.
Related
Inquiry into the financial and operational performance of TasWater
HIA's Tasmanian Executive Director Benjamin Price addressed the Public Accounts Committee regarding TasWater's financial and operational performance. The statement covers issues relevant to the water utility's impact on the building and construction industry in Tasmania.
Why it matters: Builders and plumbers in Tasmania may be affected by TasWater's performance, including connection delays, infrastructure capacity, and cost impacts on new developments.
Brick supply and allocation update
HIA is working with government and manufacturers on brick supply and allocation issues affecting home building in WA. No specific outcomes or changes have been announced yet.
Why it matters: Builders in WA may face ongoing project delays due to brick shortages. Supply constraints can affect scheduling, contract timelines, and cash flow.
Preparing for the card surcharge ban
From 1 October 2026, card surcharges will be banned in Australia. Builders, contractors and suppliers must update their pricing, contracts and payment systems before the deadline.
Why it matters: Affects builders, plumbers, electricians and all trade contractors who currently pass card fees to customers. They must absorb or restructure costs before October 2026.