The single-family home segment remained high in October compared to last year despite the slight monthly decline in sales, according to the latest market update from the Housing Industry Association (HIA).
Sales of new homes fell 1.3% in October. Despite this drop, new home sales remained 31.6% higher in the three months ending October than in the same period last year.
Tim Reardon, chief economist for the HIA, said lower interest rates, fiscal stimulus such as JobKeeper and housing assistance programs like HomeBuilder have supported households , giving them the opportunity to spend on housing.
"HomeBuilder has been the catalyst for improving consumer confidence in the housing market. The strength of the market response is due to several factors besides HomeBuilder," he said .
Some households, Reardon said, have already readjusted their budgets, some shifting their travel and entertainment spending toward housing, including home renovations. This is especially true among the tree and sea changers, who have used the year to move from city centers to regions.
"An unexpected reversal in the urbanization trends of the last century has seen an increase in demand for single-family housing. There has been a sudden shift in the Australian population from central Sydney and Melbourne to all others regions, ”he said.
In fact, sales to regional regions increased significantly in Western Australia, which grew 132.2% in the three months ending in October. South Australia (38.1%), Queensland (26%), New South Wales (14.6%) and Victoria (2.2%) also saw increases in home sales new during the quarter.
"This shift in urbanization trends will return when the economies of Sydney and Melbourne return to their full potential," Reardon said.
Top suburbs:
Mortdale
,
Westbrook
,
Murdoch
,
miller
,
new farm
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