New home sales plunged by 13.1% in the month of July, highlighting the impact of the recent increases in the cash rate by the Reserve Bank of Australia.
Housing activity indicators from the Housing Industry Association (HIA), show decreasing buyer confidence amid anxiety around construction industry pressure and interest rates.
?This slowdown is consistent with reports from builders over recent months which have seen the number of people visiting display sites and making inquiries slowing since the first increase in the cash rate in May,? said HIA Chief Economist Tim Reardon.
?If this decline in sales is sustained, which is expected, then the 1.75% increase in the cash rate so far, will have brought this pandemic building boom to an end,? said Mr Reardon.
Industry figures found a silver lining in the numbers, indicating the decline was coming from record peaks of early this year.