Sales of new homes in 2011 remain well down on their stimulus-driven highs, a new report has found.
The number of new homes sold across the country edged up by 0.6 per cent in February 2011, according to the latest HIA – JELD – WEN New Home Sales Report, which surveys Australia’s major residential builders.
The report showed that detached house sales actually increased by 1.5 per cent but the sale of multi-units dropped by 7.6 per cent.
HIA chief economist Harley Dale said that new home sales were running at volumes considerably below those experienced during the stimulus-driven run of 2009 and early 2010.
“At the very time when new home conditions need to be continually improving we are faced with compelling evidence of a considerably weaker 2011 compared to last year,” Dr Dale said.
“Interest rates are on hold for now and that is a tick in the box for the housing industry, but an upward bias to rates remains in play. The onus is on federal and state governments to reinvigorate the policy reform process to reduce the excessive costs of new housing.”