Recently released figures from the Housing Industry Association (HIA) suggest that the trend of recovery in new home sales seen since late 2012 has continued into 2013.
The latest HIA New Home Sales report shows that seasonally adjusted sales for new homes increased by 3.9 per cent in April 2013. This took monthly sales back to a level not seen in over a year. The headline result was driven by a 6.7 per cent increase in detached house sales, which was experienced across all states surveyed except for Queensland. In contrast, multi-unit sales fell by 9.4 per cent.
HIA senior economist, Shane Garrett, said that recent developments in new home sales are an encouraging sign for the market.
"In particular, the important detached house segment of the market continues to climb out of recent record lows, and this improvement has largely been broad-based across the states," explained Mr Garrett.
"While multi-unit sales have softened over recent months, the gains made over the course of 2012 have not been eroded. A broader look at the situation shows that the volume of sales in the three months to April this year [was] still 51.7 [per cent] higher than the trough experienced a year earlier.
"We do, however, need to be considering the longer term prospects of a recovery in residential construction beyond 2013," concluded Mr Garrett.
In the month of April 2013 detached house sales increased by 9.1 per cent in Victoria, 9.0 per cent in Western Australia, 8.1 per cent in New South Wales, and 2.7 per cent in South Australia. Detached house sales fell by 1.8 per cent in Queensland.