New home sales record modest growth
The Housing Industry Association (HIA) has recorded a modest partial recovery in new home sales in April, following a ‘very weak’ end to the first quarter of 2012.
HIA’s Chief Economist, Dr Harley Dale, said the April lift in new home sales comes despite an overall pessimistic outlook in the sector.
"Even with this latest improvement, the aggregate volume of both new home sales and local government building approvals imply that in the absence of a rapid and sustained recovery, national new home building is heading to a recessionary level in 2012,” Dr Dale said.
The HIA has urged the Reserve Bank to follow up with more interest rate cuts to ensure the modest gains can be properly capitalised on.
The HIA - JELD-WEN New Home Sales report, based on a survey of Australia’s 100 largest builders, showed a rise of 6.9 per cent in total seasonally adjusted new home sales in April 2012. Detached house sales rose by 6.4 per cent while multi-unit sales were up by 10.3 per cent.