According to the latest figures from the Housing Industry Association (HIA), the Australian housing market recorded a second consecutive monthly rise in new home sales in September.
New home sales registered a monthly gain of 5.7%, reaching the level seen in the last half of 2018.
"The sales improvement is a welcome respite from the continuing decline that occurred at the end of 2018. It is still too early to confirm that the bottom of the cycle has passed, but this result highlights the fact that that other major falls are unlikely to occur in new home sales, "said HIA.
Despite this monthly gain, new home sales remained down quarterly, down 1.5% from the June 2019 quarter and down 6.3% from the September 2018 quarter.
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Read also: Building approvals and new home sales remain weak
The sales figure for new homes rose for the month in all states, with the exception of New South Wales, where sales were down 12.1%. South Australia recorded the best performance, at 18%, followed by Western Australia (13.6%) and Victoria (11%).
However, these monthly gains did not offset the weaker results of previous months, resulting in weak quarterly results. Only Queensland could record a significant quarterly growth of 6.9%.
Growth factors of sales
HIA said housing prices had started to rise again, which could indicate an improvement in market confidence. Several factors, such as recent rate cuts and looser loan management facility requirements, are likely to encourage market activity for investors and first-time buyers.
"These cuts, as well as the easing of APRA's requirements for credit management facility, began to have a knock-on effect on housing finance. have started to fall back on the market and the first buyers have the largest share since 2012, "said HIA.
The forthcoming implementation of the first home loan deposit system is also expected to play a role in improving the housing market as a whole.
"There will likely be an increase in the activity of first time buyers, which will help support recent improvements in new home sales," the report says.
Top suburbs:
West Rockhampton
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Penrith
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St. Peters
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Marrickville
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tweed is heading south
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