Today’s Housing Industry Association (HIA) New Home Sales Report for November 2020 shows HomeBuilder is continuing deliver on its objective of generating residential construction demand to protect tradies’ jobs and drive our comeback from the COVID-19 recession.
The Report showed new home sales have risen by a further 15.2 per over the month to set a new decade high, with sale in the three months to November 41.1 per cent higher than the same time last year.
Every new home sale represents more work for our tradies and more economic activity as part of our comeback. HIA’s economist Angela Lillicrap said today;
“The strength of New Home Sales is a positive sign that home building will support the broader economy as we enter 2021.”
The HIA also found that new home sales in the three months to November 2020 were higher in all regions when compared with the same period in 2019:
- Western Australia (108.8 per cent),
- South Australia (57.6 per cent),
- Queensland (34.0 per cent),
- Victoria (22.2 per cent), and
- New South Wales (20.7 per cent).
First home buyers are leading the way in the housing comeback from the COVID-19 recession:
- According to the ABS, the number of loans to first home buyers reached the highest number in over a decade, accounting for 42 per cent of the total number of owner occupier loans issued in October.
- NAB lending to first home buyers increased by 21 per cent against their 12-month average, with regional areas across the nation recording a 44 per cent increase in first home buyer activity.
- Real Estate Institute of Australia reconfirmed that in their Housing Affordability report. First home ownership is at 10 year high.
To maintain this momentum in Australia’s economic comeback, the Morrison Government has announced HomeBuilder will be extended until 31 March 2021.
For all new build contracts signed between 1 January 2021 and 31 March 2021:
- Eligible owner-occupier purchasers will receive a $15,000 grant; and
- The property price caps for new builds in New South Wales and Victoria will be increased to $950,000 and $850,000 respectively.
In addition, the construction commencement deadline will be extended from three months to six months for all eligible contracts signed on or after 4 June 2020.
The construction industry has said the extension of HomeBuilder will mean a steady pipeline of construction activity through to 2022, which will keep tradies on the tools.