- New home sales strengthened in May, showing a desire for detached homes despite the end of stimulus measures
- According to the HIA New Home Sales report, new home sales increased by 15.2 per cent in May compared to April
- “This solid level of sales in April and May indicates ongoing demand for new detached homes, even in the absence of stimulus,” HIA economist Tom Devvit says
- Comparing April and May to the same months in 2019, New South Wales saw a massive 36.9 per cent increase in new home sales
New home sales strengthened in May, showing a desire for detached homes despite the end of stimulus measures.
According to the HIA New Home Sales report — a monthly survey of the largest volume home builders in the five largest states — new home sales increased by 15.2 per cent in May compared to April.
“This increase see sales in the two months since the end of HomeBuilder, 2.9 per cent higher than the same time in 2019,” HIA economist Tom Devitt.
“This solid level of sales in April and May indicates ongoing demand for new detached homes, even in the absence of stimulus.”
Comparing April and May to the same months in 2019, New South Wales saw a massive 36.9 per cent increase in new home sales.
This was followed by Western Australia (26 per cent), Queensland (four per cent) with South Australia and Victoria seeing a decline of 14.2 per cent and 16.1 per cent, respectively.
Mr Devitt said a record number of new home sales are expected to commence construction in 2021.
Low interest rates and confidence in the market are continuing to drive demand, according to Mr Devitt.
“New South Wales has driven the solid result of the last two months more than any other state. Sales in April and May were 36.9 per cent higher in this state than at the same time in 2019.
“New South Wales saw the smallest uptake of the HomeBuilder program, but is demonstrating the strongest demand following the end of the program.
“The strength of demand in New South Wales suggests that other states will also begin to demonstrate a solid demand for new homes as the impact of HomeBuilder fades,” concluded Mr Devitt.
According to data from the Treasury, the total number of applications for the HomeBuilder grant as of April 9 was 121,363, a week before the deadline closed.
