New home sales increased by 15.2% in May 2021 compared with the previous month, according to the latest HIA New Home Sales report. Source: Timberbiz
HIA Economist Tom Devitt said the increase sees sales in the two months since the end of HomeBuilder, 2.9% higher than the same time in 2019.
“This solid level of sales in April and May indicates ongoing demand for new detached homes, even in the absence of stimulus,” he said.
A record number of new homes are expected to begin construction in 2021 with low interest rates and confidence in the housing market continuing to facilitate demand.
“New South Wales has driven the solid result of the last two months more than any other state. Sales in April and May were 36.9% higher in this state than at the same time in 2019,” Mr Devitt said.
New South Wales saw the smallest uptake of the HomeBuilder program but was demonstrating the strongest demand following the end of the program.
“The strength of demand in New South Wales suggests that other states will also begin to demonstrate a solid demand for new homes as the impact of HomeBuilder fades,” Mr Devitt said.
Comparing the last two months of April and May to the same months in 2019, New South Wales led the pack, up by 36.9%. This was followed by Western Australia (+26.0%), Queensland, (+4.0%), South Australia (-14.2%) and Victoria (-16.1%).
