Investment opportunity grows as new home sales increase during December quarter

By the resi financial blog team, 03 February 2014

New home sales in Australia

The latest Housing Industry Association (HIA) report has highlighted the increase in new home sales during 2013 - the first annual growth in five years. This could be great news for anyone interested in taking out an investment loan in the near future.

The HIA New Home Sales report has indicated a 6.3 per cent increase in the number of new home sales during the quarter of 2013, showing the first annual increase in these figures since 2008 when sales activity was subject to government stimulation.

HIA Economist Diwa Hopkins said this was encouraging for the nation, following a year of steady growth across the entire real estate industry.

"New home sales hit a low ebb during 2012. However, a strong recovery took place in 2013 with sales recording their first annual increase in five years. The key now will be for these improved sales levels to expand further in the year ahead," said Ms Hopkins in a January 30 statement.

The report highlighted a 6.3 per cent increase during the final quarter of last year, bringing these figures back to a level last seen in mid-2011.

During the month of December, 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.

Over the entire final quarter, these figures are even more impressive. South Australia recorded a huge 50.9 per cent increase, while there was also a 12.3 per cent growth in Queensland, 3.5 per cent in New South Wales and 2.3 per cent in Western Australia.

This could indicate a great opportunity for the expansion of your property portfolio in the coming months, especially with the projected population increases expected over the next few years.

Categories: Home Loans, Property Investment