According to The Australian Financial Review, a slumping new home market is creating opportunities for builders able to meet the needs of buyers with less money to spend but who still need to buy a new home.
The Housing Industry Association on Tuesday said new home sales fell for a second month in July, prompting the lobby group for large house builders to renew predictions of decade-low activity next year even if interest rates were cut immediately.
Separately, however, even as ASX-listed builder Tamawood predicted a “subdued” next 12 months for the industry as a whole, the company said it was seeing an increase in sales of its single-storey, four-bedroom homes to clients now priced out of the market for larger two-storey homes.
He said the increase in sales – of homes about $300,000-$350,000 in price – had recovered the company’s total from the decline of about 30 per cent it suffered after raising prices from mid-2020 after the start of the HomeBuilder incentive payments.
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