New home sales rise to highest level in 18 months: HIA
New home sales increased by 1.6% in May, taking monthly sales back to their highest level in 18 months, according to the Housing Industry Association's (HIA) latest survey of Australia's largest volume builders.
The strong, but uneven improvement in May comes one day ahead of the HIA's housing summit in Sydney, addressing issues affecting the supply of new housing.
Detached house sales posted modest growth of 0.9% through gains occurring in three out of five mainland states – New South Wales, Victoria, and South Australia.
Multi-unit sales enjoyed a faster monthly growth pace of 5.7%
In the month of May 2013 detached house sales increased by 4.3% in New South Wales, 8.8% in Victoria, and 6.9% in South Australia.
Detached house sales fell by 2.2% in Queensland and by 10.3% in Western Australia.
"It is pleasing to observe upward momentum in new home sales continuing, especially given the low depths plumbed in 2012,” says HIA chief economist, Dr Harley Dale, a speaker at tomorrow's summit.
“A range of housing indicators, including new home sales, suggest Australia experienced modest growthin new residential construction in 2012/13, with some momentum in activity set to carry into the fresh financial year.
“That outcome was important, following as it did a sustained period ofweakness which saw activity in a majority of markets reach historically very low levels.
“The key is whether a new home building recovery can be sustained, and at a growth rate sufficient to meaningfully assist the Australian economy with its rebalancing acts,” says Dale.
