Australian New Home Sales at Highest Since 2010

Sales of new homes in Australia rose for a fourth straight month in April to reach their highest since at least 2010 as falling mortgage rates and the lure of rising house values drove demand.

The Housing Industry Association (HIA) said its survey of large volume builders showed sales of new homes rose 0.6 percent in April, from March when they jumped 4.4 percent.  Sales of multi-units rose 0.9 percent in the month, while sales of detached homes were up 0.4 percent.

“The profile for new home sales in 2015 is consistent with a new home building cycle where further upward momentum resides largely in the ‘multi-unit’ sector and where the eastern seaboard states are driving the further growth,” said HIA chief economist, Harley Dale.  Australia is in the midst of a home building boom thanks to historically low mortgage rates and rapid population growth, with the Reserve Bank of Australia (RBA) cutting its rates to a record low of 2.0 percent earlier this month.