New home sales plunged more than 13% last month, but that shouldn?t be a shock after the RBA?s cash rate decision.
After yet another hike in interest rates, you would expect prospective homebuyers to be increasingly cautious about borrowing.
Building and construction impacts had also led to expectations of a decline in the second half of 2022.
So should the housing industry be concerned?
A little, as interest rate rises are projected to continue for the rest of the year so this, would likely continue a downturn in the coming months.
But, there?s still a large amount of work under construction and approved-but-not-yet-commenced that will provide a buffer for the industry so construction companies and tradies don?t need to panic yet as demand remains strong.