As interest rates remain on hold for the time being, and experts suggest this could be the continuing status quo for much of 2011, it appears that interest in the new homes market is slowly returning.
A recent survey by HIA-JELD-WEN revealed that the number of new home sales across Australia increased by 2.5% for January – the first rise in three months.
House sales were up by 2.2%, while multi-unit transactions rose by 5% for the period.
Renewed confidence in New South Wales’ property sector resulted in new home sales soaring during January, up by 10.3% as the state led the charge, followed by Victoria and Western Australia with an increase of 9.6% and 6.3% respectively.
In a recent media release chief economist with the HIA Harley Dale, said the while the figures were modest, they were still encouraging.
“The new home building sector was buffeted in 2010 by rising interest rates and a lack of policy reform to wind back the impact of the dead hand of regulation on new housing costs,” Dr Dale said.
He says that although new home starts were expected to remain somewhat sluggish for the remainder of the year, a hold on interest rates would certainly help the sector recover.
Source: HIA Media Release
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