New home sales are back with a vengeance, according to the Housing Industry Association (HIA).
New home sales increased by more than 11 per cent in August, the highest monthly result for more than three years.
HIA chief economist Harley Dale said a fresh wave of first time buyer interest had helped spur the significant growth
“The boost to new home construction from the tripling of the First Home Owner Grant for new dwellings will be apparent throughout the second half of 2009 and well into 2010,” Mr Dale said.
In the month of August 2009 the number of detached house sales increased by 11.8 per cent while the number of apartments sold rose by 7.5 per cent.
“The stimulus to first home buyers is clearly still exerting a positive impact on new home demand. At the same time there is moderate evidence of a lift in trade-up buyer activity in the new home market, but it is difficult to say the same for investors,” Mr Dale said.
Detached New Home Sales increased by 21.8 per cent in Victoria, 20.9 per cent in Queensland, and 15.1 per cent in Western Australia during August. Sales fell by 11.3 per cent in New South Wales and by 2.5 per cent in South Australia.