Australia’s Housing Industry Association reports that new-home sales increased for the second consecutive month in November, although the overall numbers are still low for new homes across the country. HIA officials note that the 4.7% increase in sales was made possible by a string of declines that occurred prior to October and that sales are still down 15.7% from the same period in 2011. Even so, many feel states’ efforts to bring new homeowners into the market and encourage more homebuilding in 2012 is a good sign for what’s to come this year. For more on this continue reading the following article from Property Wire.
New home sales in Australia increased by 4.7% in November, the second consecutive monthly improvement, according to the latest figures to be published.
There was an encouraging lift in sales of detached houses, said the Housing Industry Association, the voice of Australia’s residential building industry.
The HIA New Home Sales report, a survey of Australia’s largest volume builders, shows that the 4.7% rise was boosted by an increase of 7.7 % in sales of detached houses following a run of five consecutive monthly declines. Multi unit sales declined by 6.9% after a spike in October.
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‘Against the back drop of late 2012 when we had lower borrowing rates combining with a number of states encouraging new home building through amendments to first home buyer assistance, it is promising to see new home sales moving in the right direction,’ said HIA economist, Geordan Murray.
‘The positive result in November was driven by the detached house segment of the market which experienced a trend decline in sales throughout most of 2012. This result should provide some welcome respite,’ he added.
But Murray pointed out that while the increase in of November is encouraging, new home sales remain at quite low levels. ‘If we consider the three months to November, the volume of sales is 15.7% lower than in the same period in 2011. This overall profile shows that we have a long way to go before we could consider sales volumes to be at satisfactory levels,’ he explained.
‘The importance of a broad based rejuvenation of new home building to maintaining the health of the overall Australian economy has been widely acknowledged, but at this stage, new home sales sits among a host of indicators that are yet to provide conclusive evidence that we are on track to achieve this,’ he added.
In November, the number of seasonally adjusted new detached house sales increased by 15.8% in New South Wales, 15.6% in Victoria and 6.7% in South Australia. Detached house sales were only just down by 0.1% in Queensland and declined by 6.8% in Western Australia.
This article was republished with permission from Property Wire.