Builders are already seeing the benefits of the Federal Government's $688 million HomeBuilder program.

The scheme was announced just over a month ago, giving eligible homeowners or first home buyers a cash grant of $25,000 to build new homes up to the value of $750,000 or to assist with renovations.

Chief Economist at the Housing Industry Association Tim Reardon says new home sales rose by almost 78 per cent in June.

“Following on from the worst months that we've had on record, we saw a very dramatic increase in the number of new home sale contracts being signed,” he said.

“This is a very dramatic turn around in consumer confidence.”

Some businesses have reported receiving their highest volumes of sales ever in the days following the announcement of the scheme.