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New home sales have strengthened to levels seen late last year.
The latest HIA New Home Sales report reveals sales have jumped by 5.7 per cent for the second consecutive month. However, sales are still down compared to the June 2019 quarter, HIA economist Angela Lillicrap said.
“The improvement in sales is a welcome reprieve from the steady decline that emerged in late 2018. It remains to soon to confirm that we have passed the bottom of the cycle, but this result does highlight that we are not likely to see further material falls in new home sales,” she said.
While the easing of lending restrictions and interest rate cuts have started to take effect, Ms Lillicrap expects an increase in first home buyer activities as the government’s First Home Loan Deposit Scheme is likely to begin next year.
“We expect that the improvement in new home sales will be sustained,” she said.
NSW was the only state where new home sales fell, down by 12.1 per cent last month.
Significant growth was seen in South Australia, up by 18 per cent; Western Australia had an increase of 13.6 per cent in September; and 11 per cent more new house were sold in Victoria.
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