New home sales posted a fourth consecutive gain in April, providing an important positive signal for stronger economic activity.
Private sector new home sales enjoyed a monthly gain of 2.9% to be up by 6% over the three months to April this year, says the Housing Industry Association (HIA).
Multi-unit sales increased by 9.3% in April. Detached house sales chimed in with a 1.8% rise which marked the sixth consecutive increase for this component.
HIA Chief Economistr Harley Dale said:
“The recovery in new home building is a key plank in Australia’s economic growth, as evidenced by the March quarter construction work done figures released yesterday.”
Dr Dale says momentum in new home building will carry over into the June quarter, while the trajectory evident in coming months for leading indicators such as new home sales and building approvals will provide crucial insight to the growth prospects for the broader economy in 2014/15.
In April 2014 seasonally adjusted detached house sales increased by 6.4% in Western Australia, 5.2% in New South Wales and 0.5% in Victoria. Detached house sales fell by 2.1% in Queensland and 6% in South Australia.
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