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    New homes sales improving

    Published on 15 January 2019, Tuesday, 6:27 AM

    Last year's interest rate cute has had a significant impact on the new home building sector, according to a new survey.

    The Housing Industry Association (HIA) report - carried out in conjunction with building products manufacturer Jeld-Wen - recorded a 6.8 per cent increase in new homes sales in November.

    Based on results from Australia's 100 largest builders, sales of detached homes also increased - up by 9.8 per cent.

    HIA chief economist Harley Dale welcomed the news, but also encouraged further financial intervention.

    "With falling interest rates, a competitive building market, and a greater availability of skilled trades amidst still very soft overall demand conditions, now is clearly a good time to build a new home for those who are financially set to take that decision," Dr Dale said.

    "Interest rate cuts, both those we've had and those that are still warranted, provide a starting catalyst for a sustained and strong recovery in new home building conditions. Such a recovery won't emerge, however, without well-targeted government stimulus and without a re-engagement of the policy reform process to reduce the high and inefficient barriers to new housing supply," he added.

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    Nathan Mills
    Nathan is a seasoned Kennards Hire team member passionate about empowering DIYers in their projects. He loves everything DIY and brings together years of equipment and project experience to help customers get the right tools for their next job.