First year of new home sales growth since GFC

by 31 Jan 2014

New home sales statistics revealed the first year of growth since 2008, pointing to a possible recovery in the sector.

According to the latest HIA New Home Sales report, new home sales as a whole rose 14.4% in 2013.

HIA economist Diwa Hopkins says the encouraging results come after a “low ebb” in sales during 2012.

"The key now will be for these improved sales levels to expand further in the year ahead,” said Hopkins.

“During the final quarter of 2013, aggregate new home sales climbed by 6.3 per cent to reach a level not seen since mid-2011,” she said.

“This was at a time when sales activity was being boosted by the government stimulus.”

While total new home sales was largely unchanged in the month of December, the broad trend shows a “healthy profile of recovery” throughout 2013, said Hopkins.

 “The aggregate monthly decline was due to an unsurprising pull-back in multi-unit sales, following the previous month’s very strong result. Looking at detached house sales, the growth in this segment has broadened in its reach, with four out of the five surveyed states showing monthly and quarterly increases in December 201.”.

In the month of December 2013 private detached house sales increased by 22.5 per cent in South Australia, 7.3 per cent in Western Australia, 5.8 per cent in New South Wales and 1.5 per cent in Queensland. Detached house sales fell by 13.4 per cent in Victoria.

During the final quarter of 2013, detached house sales increased by 50.9 per cent in South Australia. They also rose by 12.3 per cent in Queensland, 3.5 per cent in New South Wales and 2.3 per cent in Western Australia. In Victoria, detached house sales fell by 9.5 per cent over the December 2013 quarter