Encouraging growth for new home sales across Australia
New home sales have increased over the last few months, which lead to great conditions for those looking into buying a property in the near future. Whether you're interested in property investment, selling a house and upgrading, or approaching the market as a first home buyer, there are wide range of options available to you.
January saw new home sales increase by 0.5 per cent nationwide, with Housing Industry Association (HIA) Senior Economist Shane Garrett stating this rise was split between two property types. Detached home sales increased by 0.3 per cent, while multi-unit sales grew by 1.6 per cent over this period.
"New home sales have been rising pretty steadily since the third quarter of 2012, encouraged by the falling interest rates and the return of confidence to the housing market. The return of house price growth to most cities has done much to oil the market and allow transactions to start occurring in greater numbers," said Mr Garrett in a March 3 statement.
When compared with results from 12 months earlier, the last quarter of 2013 was exceedingly strong. In fact, in comparison to the last quarter of 2012, these sales were up by 22.3 per cent in the final quarter of 2013. Furthermore, January 2014 saw a 17 per cent increase in sales compared to the beginning of 2013. With evidence of the improving housing market occurring, now could be a great time to consider securing investment property in the near future.
Mr Garrett also stated that these improving sales could indicate a stronger dwelling construction industry during 2014, with the recent HIA Outlook report highlighting forecasts for building commencements.
"This year, we expect about 165,600 commencements, followed by 168,000 starts in 2015. Accordingly, we should continue to see stronger sales activity in the coming years," said Mr Garrett.
During the three months leading up to January 2014, new detached home sales increased across the nation. South Australia saw the biggest growth - rising by 50.4 per cent - while Queensland (17.8 per cent) and New South Wales (6.2 per cent) followed suit.
Furthermore, during the month of January, new detached dwelling sales grew in Victoria and Queensland, increasing by 10.9 per cent and 0.4 per cent respectively. With the construction industry beginning to feed into increased home sales, Mr Garrett highlighted the importance of maintaining new home building recovery efforts.
"State governments will be framing their budgets in the coming months, and it is vital that their policies work to sustain the housing market recovery," said Mr Garrett.