New home sales increased for a second consecutive month in June, due to a spurt in multi-units.
The Housing Industry Association’s (HIA's) New Home Sales report, revealed an increase of 2.8 per cent in June 2012 due to a 15.7 per cent jump in the sales of multi-units.
Detached house sales continued their disappointing run in 2012, growing by only 0.7 per cent in June following a decline of 2.0 per cent in May.
"It is encouraging to see a second consecutive jump in the sale of multi-units," HIA chief economist Dr Harley Dale said.
“Sales were up by 30.8 per cent over the June 2012 quarter.”
"It is, however, a stark reminder of how much catching up is left in the multi-unit sector when a lift of this magnitude still leaves sales volumes 36 per cent below their ten year average.”
Over the June 2012 quarter detached house sales fell by 1.1 per cent to be a sharp 24.5 per cent lower than the volume for the June 2011 quarter.
“That’s a concerning update which sees detached house sales running at an annualised level 35 per cent lower than the ten year average and 44 per cent below the long term history of the series," Dr Dale said.
“Lower interest rates will assist new housing in 2012/13, but the large gap between the cash rate and variable mortgage rates will blunt their positive impact.
“Investment and reform from governments is the key ingredient to lifting the new housing sector substantially above the recessionary levels of 2012. State governments have a crucial role to play, as do local governments, but it is the federal government that needs to act first and lead by example.”