New home sales increase nationwide

By the resi financial blog team, 04 March 2014

New home sales increase in Australia

New home sales in Australia increased during the first month of 2014, which could be great news for anyone considering taking out a home loan and securing real estate across the country in the near future. 

Housing Industry Association (HIA) Senior Economist Shane Garrett said the total number of new home sales increased 0.5 per cent during January. Specifically, the sales of new detached homes rose 0.3 per cent, while multi-unit sales increased 1.6 per cent. 

"New home sales have been rising pretty steadily since the third quarter of 2012, encouraged by the falling interest rates and the return of confidence to the housing market," said Mr Garrett in a March 3 statement. 

"The return of house price growth to most cities has done much to oil the market and allow transactions to start occurring in greater numbers." 

These figures also represent increases over the same period 12 months earlier. For example, new home sales during January 2014 were 17 per cent higher than the year before, while the three months before January saw an annual increase of 22.3 per cent compared to the same quarter from 2012. 

"Strengthening new home sales activity suggests that higher dwelling construction activity during early 2014. The HIA recently published its series of Outlook reports, which revised its forecasts for new home commencements upwards for 2014," said Mr Garrett. 

"This year, we expect about 165,600 commencements, followed by 168,000 starts in 2015. Accordingly, we should continue to see stronger sales activity in the coming years."

There were varying rates of growth during the three months prior to January across a number of states. For example, new detached house sales increased in South Australia by 50.4 per cent, followed by Queensland (17.8 per cent) and New South Wales (6.2 per cent).

Now could be a great time to investigate your home loan options and begin looking into the various properties available for future investment. 

Categories: Home Loans, Personal Finance, Property Investment