March to see mini HomeBuilder surge in new home sales: HIA
Record low interest rates and rising house prices are sustaining the new home construction market confidence into 2021, according to the HIA’s economist, Angela Lillicrap.
The latest HIA New Home Sales report shows sales in the three months to February 2021 were up 60 per cent on the same three months in the previous year.
"This strong result reflects the significant impact of HomeBuilder on demand for detached housing,” said Ms Lillicrap.
“HomeBuilder was the catalyst for improving consumer confidence in the housing market."
She noted the December 2020 surge of new home sales as households rushed to finalise contracts to build a new home before the end of the $25,000 grant.
The HomeBuilder grant is now at $15,000 until March 30.
“We expect a surge in sales in March but due to the lower grant offering, this surge will not be as large as the December 2020 surge."
“To receive the HomeBuilder grant, construction is required to commence within six months of signing a contract to build. As a consequence, it is possible that builders will delay the signing of some contracts to allow for greater flexibility and more detailed planning of projects."
Sales in the three months February 2021 increased across Australia compared to the same time the previous year.
South Australia is up by 149 per cent, followed by Victoria (+69 per cent) and Queensland (+60 per cent). New South Wales increased by 46 per cent and Western Australia is up by 25 per cent over the same period.
