New home sales climbed 9.5 per cent during January, a new report has found.
According to the most recent New Home Sales Report By the Housing Industry Association (HIA), private sector detached house sales increased by 10.1 per cent in January 2010, the first decent result since August last year.
According to HIA’s chief economist Dr Harley Dale, private Multi-unit sales also recorded an increase, rising 4.1 per cent in January on the back of a 14.5 per cent jump in December last year.
“If we were to get a sustained improvement in new home sales over the first half of 2010 then that would suggest a second round new housing recovery is achievable, driven by private demand from upgrade buyers and investors,” Dr Dale said.
“The January new home sales result is a promising start in this regard. However, it is vital to see evidence of a second round recovery emerge in coming months in what remains a very challenging period for residential construction. The successful policy of targeting new home construction via the tripling of the grant to first time buyers has now gone, interest rates are on the rise, and the considerable supply side obstacles to boosting the new housing stock, such as land supply and skilled labour constraints, are still clearly evident.”
Detached new home sales increased by 3.1 per cent in New South Wales, 17.1 per cent in Victoria, 6.3 per cent in Queensland, 6.6 per cent in South Australia, and 12.2 per cent in Western Australia.