THE end of HomeBuilder hasn’t meant an end for new homes entering the pipeline, with new home sales over the June quarter jumping 15.3%.
According to the latest HIA New Home Sales report, new home sales in June were 11.2% higher than during the same period in 2019.
“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 Angela Lillicrap, economist at HIA.
While home sales have dropped below levels recorded throughout the duration of the government’s HomeBuilder initiative, sales are up on the same quarter in 2019 and equal to the same quarter in 2018.
The state of market conditions, with historic low interest rates and strong buyer confidence continue to underpin demand.
“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,” added Lillicrap.
However, new home sales volumes are varied across the five largest states that the report surveyed.
In New South Wales and Western Australia, new home sales were up by a third in the 2021 June quarter compared to the same period in 2019, while in Queensland sales were still strong, up 4.4% on the 2019 June quarter.
Meanwhile in Victoria, sales volumes were down by 0.1% and in South Australia sales were down 14.4% compared to the same period in 2019, after seeing the strongest response to HomeBuilder.
“This strong volume of sales will continue to pull the national economy forward,” concluded Lillicrap.