New home sales up for fourth month in a row down under

New home sales in Australia climbed for a fourth month in a row in April 2014, according to new figures.

The increase provides an "important positive signal" for broader economic activity, says the Housing Industry Association.

Private sector new home sales enjoyed a monthly gain of 2.9 per cent to be up by 6.0 per cent over the three months to April this year. Multi-unit sales increased by 9.3 per cent in April. Detached house sales chimed in with a 1.8 per cent rise which marked the sixth consecutive increase for this component.

“The recovery in new home building is a key plank in Australia’s economic growth, as evidenced by the March quarter construction work done figures released yesterday,” comments HIA Chief Economist, Dr Harley Dale.

“Momentum in new home building activity will carry over into the June quarter, while the trajectory evident in coming months for leading indicators such as new home sales and building approvals will provide crucial insight to the growth prospects for the broader economy in 2014/15."

He adds: “A healthy April for new home sales provides a promising start to the June 2014 quarter.”