New home sales continue to surge in November
The HIA New Home Sales report, a monthly survey of the largest volume home builders in the five largest states, and a leading indicator of detached home construction, shows new home sales increased by a further 15.2 per in November.
“This result is a decade high with sales in the three months to November being 41.1 per cent higher than the same time last year,” HIA economist Angela Lillicrap said.
“Sales nationally increased in November across the five states surveyed with a notable increase in the two largest states.
“Sales in Victoria rose 20.6 per cent as they emerged from stage four restrictions and a 15.9 per cent increase was recorded in New South Wales which has been lagging other jurisdictions.
“This data precedes the extension of HomeBuilder, which was announced on November 29.
“The extension of HomeBuilder should see strong sales of new homes reach into 2021.
“HomeBuilder is not the only reason for the strength in new home sales, although it was the trigger for improved market confidence.
“Low interest rates, house price growth and a change in consumer preferences away from apartment-style living have all seen demand for detached housing rise.
“Many households have diverted their expenditure from travel and entertainment towards housing, including renovating their home.
“The strength of new home sales is a positive sign that home building will support the broader economy as we enter 2021.”
Across the country, new home sales in the three months to November 2020 were higher in all regions when compared with the same period in 2019: Western Australia (108.8 per cent), South Australia (57.6 per cent), Queensland (34.0 per cent), Victoria (22.2 per cent) and New South Wales (20.7 per cent).