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Homebuyers’ appetite for new homes remained weak in July, falling by another 2.4%.

This is according to the latest data from Housing Industry Association (HIA), which tracks new home sales across the five largest states as the leading indicator of future detached home construction.

With the recent decline, new home sales over the three months to July 2023 were down 33.4% from last year.

HIA senior economist Tom Devitt said the sluggish new home sales and the elevated number of previous sales being cancelled point to the home-building activity reaching its lowest level in the decade next year.

“Even a cut to the cash rate now would not produce a recovery in new house commencements until the second half of 2024,” he said.

"Underlying demand for housing continues to be supported by population growth, acute shortages of rental accommodation and strong employment figures.”

Compared to the previous month, sales in July 2023 decreased in most of the large states, led by Queensland with an 11.6% decline, followed by Western Australia (9.3%), New South Wales (1.6%) and Victoria (0.6%).

Only South Australia witnessed an increase in new home sales at 35.5%.

Mr Devitt said the National Cabinet’s recent announcement to increase its five-year housing supply target is significant step in helping address the potential shortage of housing.

“Coordination among all levels of government and the industry will be crucial to achieving this goal,” he said.

Recently, the National Cabinet pledged an additional $3.5bn funding to incentivise state governments and local councils to improve housing supply. This was on top of the $2bn Social Housing Accelerator announced earlier in June.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 STAR CUSTOMER RATINGS
  • Available for purchase or refinance, min10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Dedicated loan specialist throughout the loan application.
 Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
  • A low-rate variable home loan from a 100% online lender.
  • Backed by the Commonwealth Bank.
 Disclosure
6.14% p.a.
6.16% p.a.
$3,043
Principal & Interest
Variable
$0
$350
60%
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of .

Important Information and Comparison Rate Warning

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Photo from Canva.

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