First home buyers boost new home sales

New home sales surged by more than 8 per cent in January according to the latest survey by the Housing Industry Association (HIA), Australia’s largest building industry association.

“The best home affordability conditions in five years and the boost to the First Home Owners Grant propelled the sale of new detached houses,” said HIA Chief Economist, Dr Harley Dale. Detached home sales increased by 9.8 per cent in the month and were up by 3 per cent for the three-months to January.

 “Pre-contract sales of apartments and home units declined for the fourth consecutive month, indicating a continued softness in rental investor activity,” Dr Dale remarked.

 “A better start to 2009 for new home sales is an encouraging result.  But a sustained recovery in new home construction will rely on trade-up buyers and investors returning to the market, and the timely  procurement of the planned 20,000 new public and community housing dwellings,” Dr Dale explained.

For the month of January detached New Home Sales increased by 24.2 per cent in South Australia and were up by 19.3 per cent in Victoria, 10.9 per cent in Queensland, and 0.9 per cent in Western Australia. Sales fell by 5.8 per cent in New South Wales. Detached home sales were up over the three months to January 2009 in New South Wales and Victoria.

“The unlocking of many of the private dwelling projects caught up in the credit crunch will go a long way to ensuring a broad-based private sector housing recovery. A rapid start to the Federal Government’s public housing stimulus plan announced in early February is a vital cog in transitioning the industry to recovery,” Dr Dale concluded.

Posted Wednesday 11th of March 2009, 6:04 PM