The overall number of detached homes being sold has dropped in two of Australia’s most populated States, new figures reveal.

The overall average number of sales in the country faced a slump due to poor sales figures in New South Wales and Victoria, according to the Housing Industry Association’s latest report.

Sales in NSA dropped to 7.8%, whilst Victoria fell to 6.7%. Nationally, sales fell by 2.4% for new detached houses whereas multi-unit sales rose by 23.3%. Factors thought to contribute are the economic downturn and higher interest rates. There was 0.2% less sales of new homes in Australia during the month of May.

Whilst both States suffered a decline, both have very different reasons. For example, New South Wales is suffering as it steadily recovers from low market sales, whereas Victoria experienced a record high number of sales previously, so a drop was then expected.

According to Harley Dale, HIA chief economist, the national numbers could have been much worse if Queensland’s sales hadn’t improved in May. The market saw a 19% rise in sales, despite the devastating floods in January. Mr. Dale said “The number reflects a better month for a few volume builders within which the recovery is coming from levels of sales which are close to all-time record lows. The magnitude of the rise in May is exaggerated, I think.”

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