The HomeBuilder program continues to drive exercise within the gross sales market, with new house gross sales rising 1.7% yearly in February, in line with the newest Housing Trade Affiliation (HIA) report.
On a quarterly foundation, the annual achieve is extra vital at 60.5%. This excessive participation fee remains to be as a result of vital influence of the HomeBuilder machine on the demand for single-family properties.
Of all of the states, South Australia recorded the very best gross sales, rising 149.7%. Victoria and Queensland adopted, with respective will increase in gross sales of 69.1% and 60.4%. New South Wales (46.2%) and Western Australia (25.1%) additionally had sturdy annual gross sales over the identical interval.
“HomeBuilder has been the catalyst for bettering shopper confidence within the housing market. A surge in gross sales was noticed following HomeBuilder’s announcement in June 2020, which led to sturdy gross sales till the top of 2020, ”stated Angela Lillicrap, economist at HIA.
Industrial exercise on the finish of 2020 virtually reached a brand new file quantity as households rushed to finalize their contracts to construct a home earlier than the challenge’s unique deadline.
Extending this system via the top of this month is predicted to additional increase gross sales, though not as sturdy because the surge in December. That is as a result of drop within the worth of the grant to $ 15,000.
Nonetheless, Lillicrap stated total gross sales exercise this month will doubtless stay excessive resulting from different elements.
“Traditionally low rates of interest and rising home costs are supporting market confidence via 2021. This excessive stage of shopper confidence, mixed with demographic shift to regional areas, is driving continued demand for brand new single-family properties. She stated.