The HIA New Home Sales report, a survey of Australia's largest volume builders, showed that total seasonally adjusted new home sales increased by 1.6% in May 2013, taking monthly sales back to their highest level in 18 months.
Detached house sales posted modest growth of 0.9% through gains occurring in three out of five mainland states while multi unit sales enjoyed a faster monthly growth pace of 5.7%.
In the month of May 2013 detached house sales increased by 4.3% in New South Wales, by 8.8% in Victoria, and 6.9% in South Australia. Detached house sales fell by 2.2% in Queensland and by 10.3% in Western Australia.
‘It is pleasing to observe upward momentum in new home sales continuing, especially given the low depths plumbed in 2012,’ said HIA chief cconomist Harley Dale.
‘A range of housing indicators, including new home sales, suggest Australia experienced modest growth in new residential construction in 2012/2013, with some momentum in activity set to carry into the fresh financial year,’ he explained.
‘That outcome was important, following as it did a sustained period of weakness which saw activity in a majority of markets reach historically very low levels,’ he added.
He pointed out that the key is whether a new home building recovery can be sustained, and at a growth rate sufficient to meaningfully assist the Australian economy with its rebalancing acts.
‘We won’t get that required outcome while policy makers continue to assume that super low mortgage rates will do the job all on their own. There needs to be a concerted focus, led at a Federal level, on policy action to deliver sustainably higher levels of new housing supply,’ he said.