New home sales have increased in both the month and quarter of September, 2013, according to the Housing Industry Association’s (HIA) New Home Sales report.
"Total new home sales reached their highest level in over two years in September 2013,” says HIA chief economist, Dr Harley Dale.
"Given the recovery in sales is occurring from a record low and that the upward momentum appeared to be stalling in mid-2013, this September outcome is very positive."
The report, a survey of Australia's largest-volume builders, showed that total seasonally adjusted new home sales increased by 6.4% in September 2013, the fastest monthly growth since April last year. The increase reflected a 4.5% rise in detached house sales and a 19.9% jump in multi-unit sales.
"There is clear upward momentum in detached house sales which grew by 3.7% in the September 2013 quarter to be up by 25.2% when compared with the same quarter last year. Sales of multi-units fell by 5.7% in the quarter and were largely flat compared with the same period in 2012," says Dale.
"A strong September result for new home sales needs to gather further steam and clear upward momentum for building approvals and new housing finance needs to occur over the foreseeable future. These outcomes would provide confidence that the first round new home building recovery seen in 2012/13 can gather legs this financial year," added Harley Dale.
In the month of September, private detached house sales increased by 15.7% in Victoria, 4.6% in South Australia, and 2.1% in Western Australia. Monthly sales fell in New South Wales (-2.9%) and Queensland (-5.1%). Over the September 2013 quarter, detached house sales increased in three of the surveyed states - NSW (+3.5%), VIC (+10.2%), and QLD (+3.8%). Detached house sales declined over the September quarter in SA (-0.7%) and WA (-3.3%). Compared to their long term average, detached house sales are lower in four out of the five states, with WA being the exception. The largest shortfalls are evident for QLD and SA.