 Sales of new homes increase
Sales of new homes are rising as investors as well as first home buyers are active in the market.
The Housing Industry Association (HIA) report states that new home sales rose 0.5 per cent in June.
Detached or stand alone houses are showing improved sales, rising 0.3 per cent in June, while sales of multi-unit dwellings were up 2.9 per cent in the month.
HIA chief economist Harley Dale is pleased the numbers show an improvement on the poor 2008 numbers and says low interest rates on home loans as well as first home buyer grant increases have driven the sales.
"To date, the pick-up in new home sales has been dominated by the first home buyer, a reminder that a sustained recovery in new home building needs to be more evenly spread across trade-up buyers and investors.'' Mr Dale said.
This latest increase reflects 2009 so far, with total new home sales rising 13 per cent in the six months to June,
With the boost to the first home owners grant due to expire later this year, many first home buyers have been rushing to the property market while interest rates are low.
Investors are also coming back to the market as low rates and steady house prices offer encouraging conditions.
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