New Home Sales Eased In March But Are 23.4% Higher Than A Year Ago

Getty/Mark Dadswell

Interesting data this morning from the Housing Industry Association (HIA) which gives the first real indication that the strong rebound in housing might be starting to slow but equally that it is broadening to the previously lagging parts of the country.

In total HIA reported new home sales rose 0.2% in March to finish the quarter up 5.8% and the 12 months to the end of the March quarter up 23.4%.

HIA Economist Diwa Hopkins said the recovery in sales has now spread to all states and in particular that:

Strong results occurred in the areas where a new housing recovery is just gaining traction. In the key state of Queensland, detached house sales increased by 20.8 per cent in the March 2014 quarter. South Australia is also showing promising results, with sales up by 6.2 per cent.

The original drivers of the recovery, New South Wales and Western Australia, have maintained healthier levels of sales activity. This update shows there may be some potential for further growth in these states.

For the moment the small rise in March is a reminder the economy is not yet out of the woods. But the clear positive in all of this is that as the recovery spreads and sales of new homes pick up so too will the knock on or multiplier impacts move through the economy.

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