New home sales up
New home sales have edged higher for the second consecutive month.
The Housing Industry Association’s (HIA) New Home Sales report has recorded a 3.8% increase in new home sales for September. The result follows on a 2.9% rise in August. August’s rise, however, came on the heels of a 9.7% drop in July.
HIA senior economist Shane Garrett said the growth was driven by sales of detached houses, which rose 3.8% for the month. Unit sales, meanwhile, fell 0.8%.
“However, the mix of available indicators suggests that new home building activity has now passed its peak and that the 2015/16 financial year will not be matched in terms of new dwelling starts,” Garrett said.
Garret said this trend was particularly evident in multi-unit residential sales, which fell 6.2% for the quarter compared to the same period last year.
The rise in new home sales was driven almost entirely by Victoria, where sales were up 14%. New home sales fell in the other four states monitored by the HIA, with the largest fall of 23% recorded in South Australia.