Recent data from the Housing Industry Association (HIA) has revealed that more Australians are purchasing new homes, which might be an encouraging sign for any like-minded buyer in the real estate market.
Recent data from the Housing Industry Association (HIA) has revealed that more Australians are purchasing new homes, which might be an encouraging sign for any like-minded buyer in the real estate market.
The trend was evident in November, when new home sales increased by 7.5 per cent over the month. This pushed the level of brand new property transactions up to a two-and-a-half year high, and into one of the strongest monthly growth rates seen since January 2010.
This activity over November was largely spurred by rises in new multi-unit sales (30.5 per cent), which could point to homebuyers and investors preferring this type of housing over detached properties.
“Both new home sales and private sector building approvals increased strongly over the three months to November last year, with detached housing growing by around 4 per cent according to both leading indicators, for example,” said HIA Chief Economist Dr Harley Dale in a January 10 statement.
Building approvals also strong
The new home sale figures are not just an encouraging result for homebuyers, but they’re also a boon to the national construction sector. This is because the growing demand for new homes could lead to a higher rate of building approvals, which was already evident throughout November 2013.
Australian Bureau of Statistics (ABS) data showed the level of national building approvals has been on the rise for 13 months after recording growth of 2.4 per cent.
According to an HIA analysis of this ABS data, detached house approvals increased by 5.7 per cent, which shows a growing demand for this type of property.
Interestingly, the number of multi-unit dwellings in November fell by 8.8 per cent, whereas the level of new units sold over this period rose.
“Overall, the level of building approvals is high and the latest update indicates that activity in the market continues along a rising trend,” said HIA Senior Economist Shane Garrett in a January 9 statement.
South Australia, New South Wales and Queensland were all states to see the highest increases in building approvals over the month at 23.2 per cent, 14.5 per cent and 8.3 per cent respectively.
These states were also the leaders in the country for new home sales, which could indicate a healthy level of demand for brand new properties.
If you’re thinking of buying give the team at Ray White Alexandra Hills are here to help get you into that first home sooner.
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