According to The Housing Industry Association (HIA), January saw a rebound of 9.5 percent in new home sales.  This information came from its survey of Australia’s large volume residential builders.

HIA said this result may signal that upgrade owner occupiers and investors are moving into the new home building market in “sufficient numbers to offset the withdrawal of stimulus to first time buyers”.

HIA Chief Economist, Dr Harley Dale said,” “If we were to get a sustained improvement in new home sales over the first half of 2010 then that would suggest a second round new housing recovery is achievable, driven by private demand from upgrade buyers and investors.”

“The January new home sales result is a promising start in this regard. However, it is vital to see evidence of a second round recovery emerge in coming months in what remains a very challenging period for residential construction. The successful policy of targeting new home construction via the tripling of the grant to first time buyers has now gone, interest rates are on the rise, and the considerable supply side obstacles to boosting the new housing stock, such as land supply and skilled labour constraints, are still clearly evident,” said Dr Dale.