Encouraging results for new house sales

A fourth consecutive monthly increase in the number of new home sales in Australia is cause for optimism, says the Urban Development Institute of Australia (SA).

Latest new house sales data for Australia shows a total increase of 3.4% from May to June 2013. A 7.3% increase in the number of detached house sales underpinned the promising results.

In South Australia, the positive momentum is more modest but still encouraging, with new detached house sales increasing by 0.5% from May to June.

The increase in house sales in SA follows a solid period of growth which has resulted in the quarterly figures to the end of June 2013 being almost 20% higher than the corresponding quarter last year.

UDIA (SA) Executive Director Terry Walsh is heartened by the results but says homebuyers are still struggling with high costs.

“Taxes and charges levied by government on new housing remain substantial, worsening the housing affordability crisis and continuing to lock young families out of home ownership,” he said.

“So despite record low interest rates and the slight increase in new house sales in recent months, there is still a major lack of buyer confidence. Overall, new home sales in Australia remain at one of their lowest levels for almost 15 years.

“Continued low activity levels in the housing and construction industry is also directly affecting a range of services offered by the State Government, which benefits when the sector is strong. In fact, every $1 million invested in the housing and construction industry generates 14 full-time jobs, plus state and federal taxes of approximately $143,000.”

FURTHER INFORMATION:  Please contact Terry Walsh on 0408 704 790.