New home sales lift in November

New home sales in Australia posted their fastest monthly growth rate since January 2010 in November to hit a two-and-a-half year high, according to the Housing Industry Association.

The HIA New Home Sales report showed the healthy 7.5 per cent increase in total seasonally adjusted new home sales was driven by a 30.5 per cent jump in multi-units together with a 3.6 per cent lift in detached house sales.

HIA chief economist Harley Dale said the upward momentum evident in new home sales since the closing stages of 2012 continued late last year, which is a good sign for residential construction activity in 2014.

"Both new home sales and private sector building approvals increased strongly over the three months to November last year, with detached housing growing by around 4 per cent according to both leading indicators, for example,” Dr Dale said.

"We need to see upward momentum in these leading indicators continue throughout 2014.

"For new home sales the first ‘milestone’ to look out for will be sales once again reaching the volumes experienced in the first half of 2011."

Over the three months to November 2013 the volume of detached house sales increased in all five surveyed states, while the downward trend evident in multi-unit sales reversed due to strong monthly outcomes in both September and November.