New homes sales rose 8.9% in March, according to the HIA.
New homes sales recovered 8.9% in March, after tumbling 5.3% in February, according to the Housing Industry Association, Australia's peak residential building industry representative.
HIA's New Home Sales Report showed that sales of detached homes rose 7.0%, and unit sales jumped an impressive 16.3%.
New home sales were up 2.8% for the March quarter, however they only to reach a level 1.7% lower than the March quarter last year.
HIA Economist, Diwa Hopkins, said the results showed construction levels have moderated, but remain buoyant.
“This is another positive update for the residential construction sector,” said Hopkins.
“The bounce in March has moderated the downward trend that emerged in the second half of 2015. It’s also consistent with the trend in ABS new home building approvals.”
The results put the residential building industry on a growth path for 2016.
“The current level and trajectory of new home sales and approvals provides a strong signal that new home building activity in 2016 will remain strong,” said Hopkins
Hopkins said the recent interest rate cut will further boost the sector.
“Tuesday’s cut to the official cash rate will also provide additional support to the residential construction sector,” she said.
In the month of March 2016, detached house sales increased in four of the five mainland states:
- Queensland (+13.2%)
- Western Australia (+9.8%)
- New South Wales (+8.3%) and
- Victoria (+2.8%).
Detached house sales decline -6.9% in South Australia.
In the March 2016 quarter, the level of detached house sales increased in:
- Victoria (+11.2%)
- WA (+5.8%), and
- Queensland (+4.3%).
Sales declined over this period in:
- NSW (-4.0%) and
- SA (-5.7%).