The housing market is continuing to climb, largely thanks to units which have helped produce strong new home sales in most parts of Australia.

According to the HIA new homes sales report, new home sales saw a rise of 1.2% in the month of June 2014, and a rise of 2% in the June quarter. 

The sale of new multiunits drove the result, with a whopping 15.9% rise in June alone.

Detached house sales fell by 1% in the month of June, however, over the quarter new detached sales showed an overall increase of 2.6%.

Chief Economist at HIA, Dr Harley Dale, said the rise bodes well for the economy.

“Modest growth in detached house sales last quarter, together with very elevated multiunit sales, augers well for new residential construction in addition to wider elements of the domestic economy.

“Detached house sales increased in four out of five mainland states in the June quarter, another pleasing aspect to observe,” Dale said.

Queensland displayed the strongest market for new detached house sales over the June quarter, with an increase of 6.6%. The South Australian market took a beating though, with a decline of 8.4% in new detached house sales. 

In Victoria and Western Australia, figures were up in both by 4.1%. In contrast, sales were up by just 0.4% in NSW.   

Although the overall increase in new home sales for the June quarter is good news, Dale warns it could be better. 

“As the recovery enters its third year, the magnitude and duration of the current new home building upcycle is less certain than would usually be the case at this juncture," he said.

“The share of medium/high density construction is higher and there are considerable delays occurring in the availability of titled land for detached and semi-detached housing.”