New home sales hit cyclical high down under

Photo credit: 8LettersUK

The latest HIA report reveals that the total of new home sales (seasonally-adjusted) jumped 1.1 per cent in February 2015 - following a rise of 1.8 per cent the previous month - taking the voume to just above the peak of April 2014.

Multi-unit sales led the increase, jumping 11.1 per cent, compared to a 1.3 per cent fall in house sales.

"The headlines for the national new housing sector continue to dazzle in early 2015," comments HIA Chief Economist, Dr Harley Dale.

"The signal from both HIA new home sales and ABS building approvals is for further upward momentumto multi-unit dwelling construction in 2015, but a consolidation in detached house building at volumesabove the long term average."

Dale highlights that performance varies significantly across the country,t hough, with detached house sales easing in New South Wales and Western Australia, previously key drivers of growth, and have falling considerably in South Australia.

"The modest growth in new house sales in Queensland and Victoria is not enough tooffset these declines," he concludes.