Property indicators both good and bad

The property market’s trajectory may be a puzzle, with new home sales in decline but home lending rising. The Housing Industry Association said the sale of new homes fell by 25 per cent in August compared with last year, the biggest one-month fall in this downturn in the cycle. However, the decline is relatively soft compared with previous cycles. Sales of detached homes fell by 8.4 per cent while sales of units were depleted by 16.4 per cent. Separate data from the Reserve Bank shows that housing credit increased by 1 per cent in August, up from July. However, annual growth fell to a 15-month low of 18.9 per cent in the year to August.