- Figures show new home sales were 11.2% higher in June quarter than same time in 2019
- Sales a third higher in NSW and WA, but flat in Victoria
- Data suggested a significant pipeline of construction will continue post-HomeBuilder
New home sales jumped 15.3% during June, further reiterating that a significant number of new homes will be entering the market in a post-HomeBuilder environment.
This figure means that new home sales were 11.2% higher in the June quarter than the same time in 2019.
The Housing Institute of Australia (HIA)’s New Home Sales report is a monthly survey of the largest volume home builders in the five largest states. Results are used to indicate future detached home construction.
“The strength of new home sales nationally suggests that there will be a significant number of new homes entering the pipeline post HomeBuilder which will ensure activity remains elevated into 2022,” said HIA Economist Angela Lillicrap.
Ms Lillicrap explains that while sales during the June quarter were below levels seen during the HoemBuilder program, they are stronger than June quarter 2019 and on par with the same quarter in 2018.
“Record low interest rates and confidence in the housing market are driving demand from owner occupiers.
“Strong house price growth is also a contributing factor. Households enter into a contract to build with the expectation that house prices will continue to grow and the property will be worth more when it is completed.”
Angela Lillicrap, HIA Economist
However, the strength of new home sales is not even across the states.
Private New House Sales – Australia (Seasonally Adjusted)
While sales were over a third higher in New South Wales and Western Australia during June 2021 quarter compared to June 2019, they were only 4.4% higher in Queensland, virtually flat in Victoria and down by 14.4% in South Australia.
During the HomeBuilder program, South Australia recorded the highest number of grants per capita.
“This strong volume of sales will continue to pull the national economy forward,” concluded Ms Lillicrap.