First Home buyers Lift New Home Sales

Font size :

A new report has signalled some early success achieved by the First Home Owner Grant boost announced in mid-October. National sales of new houses and units jumped 4.5% in October, following a steep drop of 10.4% in the September quarter according to the Housing Industry Association.

Sales in Queensland surged by 24.9% to their highest level in 2008. Victoria also staged a stunning improvement in the same month with sales climbing by 20.3%. South Australia notched up a decent 17% increase in sales, but both NSW and WA recorded sharp declines.

The result was one of the first concrete signs that the tripling of the First Home Owner Grant for new homes was working, seeing the grant go from $7,000 to $21,000 in Australia. NSW boosted it even higher, to $24,000.

HIA chief economist Harley Dale said the report showed the first increase in new home sales since June. It was also the largest increase since January.

"Both new home sales and building approvals fell sharply over the first nine months of 2008," said Dale. "It will be a long road back, but it is hoped that an improvement in new home sales in October could mark the beginning of a stabilisation followed by improvement in leading housing indicators over 2009."

Dale said the caveat was that any recovery in the new home market will still be constrained by a "lack of readily available land, planning delays, and the excessive cost of state and local government taxation on new homes".

The HIA survey is compiled monthly from a sample of the largest 100 residential builders in Australia, and is the first indicator of new home building activity released each month.

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

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Sep 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords