New Home Sales Up
New home sales increased in December last year, marking the third consecutive monthly rise, said the Housing Industry Association, the voice of Australia’s residential building industry.
The HIA New Home Sales report, a survey of Australia’s largest volume builders, showed that total seasonally adjusted new home sales increased by 6.2 per cent in December 2012. New home sales increased by 3.3 per cent over the December 2012 quarter, but were still 12.7 per cent lower than the level of sales in the same quarter in 2011.
“The promising headline rise last December was driven by both detached house and multi-unit sales,” said HIA Economist, Geordan Murray. “Furthermore, if we look at the under-performing market for 2012 – detached houses – the December improvement was broad-based as sales increased in all but one of the surveyed states.”
“However, the overall result for 2012 leaves plenty of room for improvement. Detached house sales were weak throughout the year and compared with 2011 were down by 22.7 per cent,” said Geordan Murray. “On the other hand, multi-units sales were the star performer of 2012. They recovered from the record lows endured in 2011 and increased by 24.1 per cent over 2012.”
“It is hoped that further signs of an impending new home building recovery emerge in coming months. However, it remains the case that lower interest rates alone will not deliver a recovery of the magnitude required by Australia’s economy and population,” said Geordan Murray.