2013 a year of solid growth for new home sales, say oz builders

Photo credit: 8LettersUK

A survey of the largest (by volume) developers by the Housing Industry Association found the consensus among builders is that 2013 was a positive year for the new home sector, with sales recording their first annual increase in five years.

“New home sales hit a low ebb during 2012. However, a strong recovery took place in 2013," says HIA Economist Diwa Hopkins.

The HIA New Home Sales report, a survey of Australia's largest volume builders, showed that total seasonally adjusted new home sales eased by 0.4 per cent in December 2013. The aggregate decline was driven by a 6.6 per cent decrease in multi-unit sales while detached house sales increased by 0.9 per cent. During 2013 as a whole, new home sales rose by 14.4 per cent, representing the first year of growth since 2008.

During the final quarter of 2013, aggregate new home sales climbed by 6.3 per cent to reach a level not seen since mid-2011.
 
“This was at a time when sales activity was being boosted by the government stimulus," remarks Diwa Hopkins.

“Looking at detached house sales, the growth in this segment has broadened in its reach, with four out of the five surveyed states showing monthly and quarterly increases in December 2013,” adds Ms Hopkins.

“The key now will be for these improved sales levels to expand further in the year ahead," she concludes.