New home sales bounce back
New home sales recovered moderately in October 2011, following on from the lowest result in more than a decade.
The latest HIA - JELD-WEN New Home Sales Report found the number of new homes sold in the month of October 2011 increased by 5.5 per cent, although sales remained down by 8.0 per cent over the three months to October.
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"It is encouraging to see a modest lift in new home sales at the start of the December quarter," HIA chief economist Harley Dale said.
"With falling interest rates, a competitive building market, and a greater availability of skilled trades amidst soft housing conditions, now is certainly a good time to build a new home for those who are financially set to take that decision.
"As it stands the profile for new home sales remains very weak, despite this latest monthly increase. In October 2011 the volume of detached house sales was 29 per cent below the average of the last fifteen years.
"There is a compelling case for another, larger interest rate cut next week, while any logic behind achieving a swift return to budget surplus in 2012/13 is spurious given current global economic conditions."
Detached house sales increased by 5.1 per cent in October 2011 following a 3.3 per cent decline in September. Sales of multi-units rose by 9.0 per cent in October following a 5.5 per cent dip in September.
