Sales of new homes increase in May

By the resi financial blog team, 21 October 2013

New home sales up in May 2013

First home buyers looking to secure a brand new property with a first home loan are likely to be in good company, as new information from the Housing Industry Association (HIA) has shown that the number of new home sales has increased over May.

According to the HIA New Home Sales Report, new home sales figures have headed towards a slow but welcomed recovery by increasing by 1.6 per cent for the month.

This rise in sales figures could potentially indicate that consumers are beginning to gain their confidence in the property market. A contributing factor to this could be the current low cash rate, which is currently sitting at 2.75 per cent.

Looking at geographical results, New South Wales reported a 4.3 per cent increase in the sale of detached houses; while Victoria had an 8.8 per cent lift.

These two states have recently made changes to their first home buyer incentive schemes, which may have helped to stimulate more activity in the sales of new homes.

In New South Wales, first home buyers are able to secure up to $15,000 in funding to go towards the purchase of a brand new home valued under $650,000.

Meanwhile in Victoria, new entrants to the property market are able to enjoy up to $10,000 for a brand new home purchase under $750,000, as well as a 40 per cent reduction on stamp duty costs.

“It is pleasing to observe upward momentum in new home sales continuing, especially given the low depths plumbed in 2012," said HIA chief economist Harley Dale in a July 3 statement.

"A range of housing indicators, including new home sales, suggest Australia experienced modest growth in new residential construction in 2012/13, with some momentum in activity set to carry into the fresh financial year."

For some of the best fixed interest rates around and help navigating through first home buyer incentives, contact a resi loan specialist today.

Categories: Home Loans