Hopeful Outlook For New Home Builders

As the doom and gloom of the GFC starts to fade, new home builders are hopeful the Australian housing industry will also bounce back with a vengeance. And so far, this recovery is right on track.

The Housing Industry Association’s (HIA’s) New Home Sales report, a survey of Australia’s large volume residential builders, showed new home sales rebounded by 9.5% at the beginning of 2010, which can only mean good things for new home builders across the country.

According to HIA data, detached new home sales increased by 3.1% in New South Wales and were up by 17.1% in Victoria, 6.3% in Queensland, 6.6% in South Australia, and 12.2% in Western Australia.

These figures are an encouraging sign that people are flocking back to the new home building market, however, the biggest concern for new home builders, is if this growth is sustainable.

With the threat of rising interest rates and the limited availability of land, unfortunately only time will tell if the new home building recovery will continue to have momentum into next year.

New home builders have their fingers crossed that these figures weren’t just temporarily boosted by the tripling of the first homeowner grant (which has since been reduced) and have future longevity.