Normal jump to sales activity in February 2023 occurs
Monthly growth in lot sales generally occurs over February given the reduction in trading days and holiday period through January. The start of 2023 was no different, with total gross sales across the growth areas of Melbourne, Geelong, Ballarat, Bendigo, and Macedon escalating by 16% to 690 lots. However, this result still indicates weak levels of new home demand, with the ninth consecutive interest rate rise in February exacerbating already fragile purchaser sentiment and further reducing borrowing capacity. Moreover, lot sales are increasingly being supported by rebates/incentives, combined with attractive deposit terms, which minimise the cash outlay for buyers when signing a contract.