Sales of new homes climbed for the third consecutive month, reaching levels not seen in more than a year according to a new report.
The latest survey conducted by the Housing Industry Association (HIA) showed new home sales rising by 4.2% during March to its highest level in 13 months. Sales have jumped by more than 20% since December as first homebuyers took advantage of the government grants and lower interest rates.
Buyers snapped up a large proportion of detached dwellings (houses) in NSW, boosting total sales by 15.2%. Victoria rose by 14.6% and while WA recorded a 7.6% increase in detached home sales. Sales of units rose by 4.7% but it's not enough to arrest a drop of 14% in sales over the March quarter.
"The First Home Owners Boost for new dwellings is clearly lifting residential building activity and securing jobs within the Australian economy," HIA chief economist, Harley Dale.
However, Savanth Sebastian, economist with CommSec pointed out that while the lower mortgage rates and the June 30 deadline for first home buyers is likely to boost the demand for property in coming months, worries about job prospects are likely to hold back property prices.
"The rise in home sales is encouraging news for the building sector. But further action by the Federal Government is likely to be necessary to prevent investors staying away, further exacerbating the rental crisis.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out