Analysts predict new home owners won’t be able to rely on their homes for wealth creation, in the same way that older generations have been able to. The latest generation of home owners are unlikely to experience the same rises in house prices seen in the late 1990s and early 2000s. Tim Lawless, the head of RP Data says home owners who have bought in the past four years will find it difficult to build equity. Mr Lawless suggests taking a long term view.
New home sales have posted a modest bounce in April, following a weak end to the first quarter of the year. The Housing Industry Association’s New Home Sales report, based on a survey of Australia’s one hundred largest builders, shows a rise of 6.9 per cent, seasonally adjusted in new home sales in April. Detached home sales rose by 6.4 per cent and multi-unit sales were up by 10.3 per cent. Numbers were boosted by the impending removal of the First Home Bonus in Victoria, with new detached house sales in that state increasing by a whopping 17.2 per cent. The scheme ends in June and gives $13,000 to city buyers of new homes under $600,000, and just under $20,000 to regional buyers.
The Australian Bureau of Statistics has released data on the value of residential construction work done. The figures reveal a drop of 8.3 per cent, seasonally adjusted, when you compare this year’s March quarter to last year.
And finally, something that may interest Sydney apartment owners, the City of Sydney is on the hunt for twenty-five apartment buildings to take part in the Smart Green Apartments program. The program gives owners a subsidised energy audit, subsidised water monitoring and efficiency plan and costed ideas on how to make the building greener. Applications close June 15.