Residential sales jump in April

Wanting-to-buy-a-house-Detached-sales-soared-in-April-_157_6013753_0_14102993_300For anyone questioning the strength of the Australian property market, the latest research from the Housing Industry Association (HIA) could give you a concrete answer: Real estate across the country is in hot demand.

The HIA New Home Sales Report for April has revealed that 2015 is on track to post record sales results. HIA Chief Economist Harley Dale pointed out that the quantity of sales has increased month on month for the first four months of the year, a sure sign that buyers are actively snapping up homes.

Similarly, detached house sales also posted encouraging results over the month, especially in New South Wales and Victoria, according to the HIA. The number of sales for this type of property increased by 7.2 per cent in New South Wales over the month, 2.7 per cent in Victoria and 0.9 per cent in Western Australia.

The growth in new home construction is also thought to be driving these results, with detached homes bouncing back. According to figures from the Australian Bureau of Statistics and the HIA, the quantity of approvals for standalone properties rose 4.7 per cent during April in seasonally-adjusted terms. In fact, the 10,264 approvals recorded over the month is the highest monthly total since November 2010, according to HIA Senior Economist Shane Garrett.

“Strengthening activity in detached house building is crucial to broadening the base of the new home¬†building recovery which has been largely contained to the multi-unit market to date,” Mr Garrett said in a June 1 release.

Chief Economist of Master Builders Australia Peter Jones echoed this point, noting that these approvals could actually indicate that, rather than just investors, more mum and dad buyers are getting a foothold in the housing market.

“This trend needs to continue to ensure that the new housing market becomes more sustainable and in putting downward pressure on new house prices,” Mr Jones said in a June 1 statement.

With sales and approval figures indicating an improvement in the freestanding house segment, the prospects for those looking to buy a house could be looking up.

Leave a Reply

Your email address will not be published. Required fields are marked *