The strength in New Home Sales in recent months indicates that the boom in detached home building will continue to create strong employment opportunities into the second half of 2022, according to the Housing Industry Association (HIA). Source: Timberbiz
The HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states – is a leading indicator of future detached home construction.
“New home sales remained strong in August, albeit not at the record levels observed prior to the end of HomeBuilder in March 2021,” HIA Economist Tom Devitt said.
“Sales in the three months to August 2021 were 15.5% lower than the same time in 2020,” he said.
“A more reasonable timeframe for comparison is the same period in 2018 and 2019, before the adverse impact of COVID-19 and the stimulus from HomeBuilder.
“In the past three months sales were 15.4% higher than at the same time in 2019 and 4.5% higher than the same time in 2018.”
This strength in sales of new detached homes was likely due to increased household savings during the pandemic. There had also been a switch in market preference toward lower density homes as working from home becomes entrenched.
In the three months to August, Western Australia led the pack, up by 60.0% compared with the same quarter in 2019, followed by New South Wales (+28.1%), Victoria (+6.7%), Queensland (-1.5%) and South Australia (-15.2%).
