The cycle of ongoing growth in new home sales was broken in July, with a 6.4% fall compared to June, according to HIA Senior Economist Maurice Tapang.


The HIA New Home Sales report is a monthly survey of the largest volume home builders in the five largest states and is a leading indicator of future detached home construction.


Mr Tapang said the fall in sales in July 2025, from a near 33-month high, is likely due to the end of financial year sales.


“Despite the monthly decline, new home sales in the three months to July 2025 increased by 15.9%, to its highest level since the September quarter 2022,” he said.


“New home sales have increased following the first two cuts to the cash rate.


“The rise in the price of established homes will also increasingly see households move to the new home building market.


“The fall in sales in July was driven by declines in New South Wales, Victoria and Queensland, while gains were recorded in South Australia and Western Australia.”


Mr Tapang said over a three-month period to July 2025 all markets saw increases in new home sales.


“This points to volatility being the driver of this month’s decline,” he said.


“Demand for new homes is increasing on the back of ongoing population growth and low unemployment.


“This improvement in sales through the start of 2025 will not be sufficient to reach the goal of 1.2 million homes. More significant structural changes to the way in which new home building is taxed and regulated will also be necessary.”


Mr Tapang said all states recorded increased new home sales in the three months to July 2025 compared to the previous quarterly period.


“This was led by Victoria (+23.4%), followed by South Australia (+23.1%), New South Wales (+18.8%), Queensland (+13.3%) and Western Australia (+2.6%),” he said.