New home sales continuing to drive recovery

Today’s Housing Industry Association (HIA) New Home Sales Report for October 2020 again shows that HomeBuilder is helping drive our tradie led recovery by pulling Australia’s economy forward.

The latest HIA results show new home sales were 31.6 per cent higher in the three months to October 2020 when compared with the same time last year.

HomeBuilder and key other elements of the Morrison Government’s Economic Recovery Plan were identified as key drivers in improved buyer confidence.

HIA Chief Economist Tim Reardon said today;

    “The detached housing market continues to perform strongly and as it accelerates will pull the rest of the Australian economy forward into 2021.”

    “HomeBuilder was the catalyst for improving consumer confidence in the housing market. The strength of the market response is due to several factors in addition to HomeBuilder.”

    “Lower interest rates and fiscal stimulus, such as JobKeeper, have also seen households more willing to spend on housing.”

Today’s data adds to the long list of economic indicators that demonstrate HomeBuilder is delivering the support the residential construction industry needs, including;

  • The number of loans for the construction of a new dwelling increasing by 27.1 per cent in the month of September 2020, the highest result since the ABS commenced collection of this data in 2002.
  • Monthly building approvals for detached houses in September 2020 was the third strongest for the past 16 years, up 20.7 per cent through the year.
  • First home buyers accounted for 40 per cent of the total number of owner occupier loans issued in September 2020, the highest in a decade.

The statistics show HomeBuilder is achieving exactly what it was designed to do. It is igniting the construction industry and helping to protect jobs right across the sector.

HomeBuilder is delivering for Australia’s tradies and home buyers, which is driving stimulus in the economy at a time its needed most.

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