Victoria and Western Australia detached house sales rise over October

According to the HIA New Home Sales Report, new home sales increased by 3% last month, a figure primarily driven by growth in detached house sales in Victoria and Western Australia.

The rate of private dwelling sales has now been restored to June 2014 levels, following a drop in purchase rates during the month of July.

HIA Chief Economist Harley Dale described the result as a “modest recovery”.

“After a relatively sharp decline of 5.7% in July, driven by both detached houses and multi-units, total new home sales have mounted a modest recovery,” he said.

“Sales are still off their cyclical peak reached back in April this year, but the overall volume of new home sales is still at an elevated level.”

The growth in detached house sales was most pronounced in Western Australia, where a 24.8% monthly increase was recorded. Victoria also recorded positive growth, with an increase of 4.7% from the month of September.

It was a different story in NSW (where home sale rates dropped by 3%) and Queensland (where the rate dropped by 7.8%), although both states have seen an overall increase in home sale rates over the past three months.

Nearly 190,000 new homes will be built in Australia this year, the highest number ever recorded.

Dale said the high rates of ABS building approvals and the strong trend towards lending for new houses seemed yet to have reached their respective peaks, indicating growth into 2015.

If you’re thinking about snapping up a new home, visit Mozo’s home loan hub to compare home loans from all of the major lenders.