New home sales picking up
Date Posted: Mar, 2014
If you thought new home sales might be cooling down anytime soon, January was a reminder that the national market remains hot.
The Housing Industry Association (HIA) reported on March 3 that more people were looking to buy property in Australia during January, representing an increase of 0.5 per cent from the previous month.
"Following their small decline in December, new home sales resumed their growth trajectory during January," said HIA Senior Economist Shane Garrett.
Sales of new detached houses increased 0.3 per cent during this time period, while multi-unit sales rose 1.6 per cent.
Mr Garrett went on to point out that new home sales have been rising relatively steadily since the third quarter of 2012, and the Reserve Bank of Australia's (RBA) recent decision to leave the official cash rate unchanged at 2.5 per cent is likely to support this growth.
Compared to the same time in 2012, new home sales were up 17 per cent in January 2013.
Outside of Western Australia and Victoria, new home sales increased across the country during the three-month period ending in January.
Those seeking a buyers agent in Sydney may be glad to know that new detached house sales increased 6.2 per cent in New South Wales during this time period.
In turn, this activity is suggesting higher activity in the home construction sector, according to the HIA.
"The HIA recently published its series of Outlook reports, which revised its forecasts for new home commencements upwards for 2014," said Mr Garrett.
"This year, we expect about 165,600 commencements, followed by 168,000 starts in 2015."
More construction could benefit home buyers seeking a more affordable deal. At the same time it acts as an indicator of high demand for housing – great news for those thinking about property investment in Sydney and throughout Australia as a whole.