Slow market is good news for new home buyers

A report from the Housing Industry Association (HIA) has shown the sales rate for new housing markets has slowed significantly in the past month, with an eight per cent drop between June and July.

The report shows a market undergoing a slow decline in both terms of price and turnover, with detached housing sales dropping by nine per cent in July.

However, the number of multi-units increased by a small margin - one per cent - over previous volumes.

But rather than being a cause for concern, chief economist at the HIA Harley Dale says that investors and first home buyers have been presented with a prime opportunity to enter the market or upgrade an existing portfolio.

Dale asserts: "A competitive building market, less pressure on skilled trades, and steady interest rates combine to mean that if you're in a financially sound position to do so, now is a particularly good time to build a new home."

Savvy investors with real estate training may recognise the opportunities afforded by the combination of falling house prices and sustained interest rates.

As Dale says in the HIA report: "The weak environment is actually good news for new home buyers."