A recovery in the housing market is finally in sight, according to the Housing Industry Association (HIA), after it recorded an increase in new home sales for the fourth month in a row.
New home sales rose by 0.5 per cent in April, the HIA said yesterday, to be 22 per cent up on the low point recorded in December last year.
The revival in new home sales points to a recovery in the housing industry – which will kick this quarter, according to HIA chief economist Harley Dale.
“The combination of low interest rates and the $21,000 first home boost have lifted prospects for the housing industry, which is expected to convert to a recovery in home building activity from the June quarter of 2009,” he said.
“The extension of the first home boost... will provide further momentum for industry activity ahead of the stimulus from the additional funding for social housing.”
The HIA forecasts new home starts to increase by 11 per cent, or 6,900, in the second half of the year.