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New home sales reach two-decade high

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1 minute read

New home sales reach two-decade high

by Cameron Micallef 19 January 2021 1 minute read

Home sales have soared for the month of December, doubling compared with the number of sales recorded in November, new research has revealed.

New home sales reach two-decade high
January 19, 2021

New data from HIA has revealed a 32.5 per cent jump in new home sales in 2020, compared with a year earlier, despite falls in the greater economy due to the COVID-19 pandemic. 

The report showed buyers were encouraged to flock to the market by the HomeBuilder stimulus, as many households rushed to finalise contracts before the 31 December 2020 deadline to access the $25,000 grant.  

“This is the second strongest month of new home sales in the 20-year history of the survey, only exceeded by March 2001,” HIA’s economist, Angela Lillicrap, said.

“It is not expected that this remarkable volume of sales will continue into January. The extension of HomeBuilder to allow contracts to be signed before March 2021 with a grant of $15,000 will support the sales of new homes into 2021, but not at this elevated level.”

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While new home sales are set to fall compared with December 2020, record-low interest rates and the improved regulatory environment is expected to support demand for new houses in 2021.

The monthly increase in sales has been broad-based across the states, with the exception of Western Australia which declined by 9.5 per cent.

“Western Australia has been the strongest-performing state since the announcement of HomeBuilder and the state government’s Build Bonus grant in June. Despite the underperformance relative to other jurisdictions, the December results are still elevated compared to previous years, with sales in the December 2020 quarter double the same time last year,” Ms Lillicrap said. 

Across the country, new home sales in the December quarter were higher in all regions when compared with the same period in 2019: South Australia (188.3 per cent), Victoria (103.1 per cent), Queensland (99.9 per cent), Western Australia (99.2 per cent) and NSW (61.7 per cent).

New home sales reach two-decade high
New home sales reach two-decade high
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About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your... Read more

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