HIA report: General home sales fell 16 per cent over the past three quarters. (AFP: William West) New figures show dwindling activity in the housing sector, with homebuyers wary about interest rates and a fall in house values.
A report from the Housing Industry Association (HIA) shows new home sales fell by a fifth of a per cent in November, while general home sales fell 16 per cent over the past three quarters.
HIA chief economist Harley Dale says the figures are expected to fall further in December and do not paint a positive picture for the new year.
"Generally speaking, the number of contracts signed was on a downward trend as a result of higher interest rates, lack of available finance and also the withdrawal of additional assistance to first homebuyers," he said.
Mr Dale says market confidence is likely to remain subdued for some time.
"The combination of affordability, challenges for first homebuyers and the environment we find ourselves in with interest rates on the rise," he said
