HIA: New home sales boosted by detached houses across nation
Five states experienced an increase in new home sales during August, which could be attributed in part to an "encouraging lift" in the number of detached houses purchased across the nation, according to the latest Housing Industry Association (HIA) release.
The New Home Sales report has shown seasonally adjusted new home sales increased by 3.4 per cent during August, driven by a 5.8 per cent increase in the number of detached houses purchased during the period.
"Strong increases were evident in New South Wales and Western Australia - areas we expect will drive continued recovery in the coming months - as well as South Australia," said Dr Harley Dale, chief economist for the HIA in an October 1 statement.
However, the popularity of multi-unit properties decreased, experiencing an 11.2 per cent decrease during August.
"There is clear upward momentum in both new home sales and building approvals for detached houses in 2013, which is being countered to an extent by a significant downward trend for multi-units. We need to see this detached house trend accelerate over the remainder of 2013."
Western Australia experienced the largest increase in private detached home sales, increasing by 10.2 per cent during August. Following this, South Australia and New South Wales reported [pp] fairly large sales growths, increasing 8.2 and 7.4 per cent respectively.
However, approvals for building across the nation is more of a mixed bag. While there was a decline of 4.7 per cent in the number of approvals sought in August, Dr Dale stated they are still at a higher level than 2012 overall.
"Lower interest rates and redirected first home buyer policies are driving a modest new housing
recovery. Some renewed growth in existing property prices, especially in Sydney and Perth, is also playing a part," said Dr Dale in an October 2 statement.
However, Dr Dale went on to state the recovery is slowing down due to a narrow geographical base, with most of the approvals occurring in New South Wales and Western Australia.
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