Interest rate cuts boost new home sales in australia

The first interest rate cut in two and a half years has had an immediate impact with sales of new homes jumping 6.8%.

The latest New Home Sales report from the Housing Industry Association based on a survey of Australia’s 100 largest builders, shows a significant bounce for sales in November 2011. Total seasonally adjusted new home sales increased by 6.8% following a downwardly revised 2.8% gain in October.

Detached house sales increased by a relatively healthy 9.8%, driven primarily by a stronger showing in New South Wales and Victoria, the report also shows. But multi unit sales fell by 17%.

‘This is a healthier but not unexpected result. Only two months earlier in September 2011, detached house sales plumbed to an 11 year low,’ said HIA chief economist Harley Dale.

Source: PropertyCommunity.com