New home sales pushed higher for the fourth consecutive month in April, following the May rate cut.
According to the Housing Industry Association’s New Home Sales Report, new home sales rose 0.6% in April. Despite this being the lowest growth pace of the four months, HIA chief economist Harley Dale says it is still a strong result off the back of a healthy March quarter.
The April result for total seasonally adjusted new home sales comprised of two small gains, 0.4% for detached house sales and 0.9% for multi-unit sales.
“The profile for new home sales in 2015 is consistent with a new home building cycle where further upward momentum resides largely in the ‘multi-unit’ sector and where the eastern seaboard states are driving the further growth,” Dale said.
“In terms of detached house sales, both NSW and Victoria posted monthly gains in April (as did
Western Australia), although Queensland recorded a disappointing decline. Sales in South Australia continued to weaken and are at an 18-month low.
“The two states to post gains in detached house sales over the three months to April 2015 were NSW and Victoria.”
In April 2015 private detached house sales increased by 7.2% in New South Wales, by 2.7% in Victoria, and by 0.9% in Western Australia. Private detached house sales dropped by 9% in Queensland and were down by 1.9% in South Australia.
In the April 2015 quarter, detached house sales increased in NSW (0.5%) and Victoria (7.4%), but declined in SA (-4.7%), Queensland (-4.4%) and WA (-1.6%).