New home sales rose a seasonally adjusted 6.4% in September, propelling Housing Industry Association figures to a two-year high.
HIA reported today that 4.5% more detached houses sold in September than August, while apartment sales jumped a whopping 19.9%.
From the report:
Monthly sales varied by state, with detached house sales up 15.7% in Victoria, 4.6% in South Australia and 2.1% in WA, but down slightly in NSW (-2.9%) and Queensland (-5.1%).
HIA noted that detached house sales are lower in four of the five states (besides WA) compared to the long-term average.
The housing market’s dramatic recovery has, in recent months, sparked concerns of a real estate bubble but many leading economists say the market’s growth is supported by strong fundamentals.
ANZ said this week that the market was “at the early stages of a solid cyclical upturn”, with prices likely to continue upwards in the coming months.
“Given the recovery in sales is occurring from a record low and that the upward momentum appeared to be stalling in mid-2013, this September outcome is very positive,” said HIA chief economist Harley Dale.
“A strong September result for new home sales needs to gather further steam and clear upward momentum for building approvals and new housing finance needs to occur over the foreseeable future.
“These outcomes would provide confidence that the first round new home building recovery seen in 2012/13 can gather legs this financial year.”