The Housing Industry Association reported that new home sales rose by a staggering 11.4% in August, the best monthly results in more than three and half years.
Victoria recorded the largest gain, with 21.8%, followed by Queensland with 20.9%. NSW, however, went in the opposite direction, with new home sales slumping 11.3%.
Your Mortgage asked HIA chief economist Harley Dale if this figure was sustainable into 2010. "In a nutshell, no," he said. "There's no doubt that there's been a final burst from first homebuyers. That activity has probably continued in the first week of September and then it's trailed off."
The $21,000 grant for first-time buyers of new homes will be scaled back to $14,000 on 1 October and then to $7,000 on 1 January 2010.
Dale said he hoped for a NSW recovery soon. "But we've been hoping for so many years," he laughed. "There has been some movement off a very low base. But it's a market that's so difficult to operate in, relative to pretty much anywhere else in the country."
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now