New home sales post fourth consecutive rise in January: HIA

The Housing Industry Association new home sales report, a survey of Australia's largest volume builders, shows seasonally adjusted new home sales increased by 4.2% in January 2013.

It reflected a 4% increase in detached house sales and a 4.9% boost in multi-unit sales.

"It is a promising update to see the momentum of late 2012 carrying into the new year," said HIA chief economist, Harley Dale.

"Over the three months to January this year new home sales increased by 10%, although sales volumes were still 6.4% lower compared to the same period a year earlier."

"Sales of new detached houses have now increased over three consecutive months, a crucial improvement given the considerable weakness experienced through the majority of last year," said Harley Dale.

"Even now, the volume of detached house sales is not much more than half the long term average. Consequently there is a long way to go to see evidence that new home building will reach the levels the economy requires as the contribution from resources-related investment wanes."

In the month of January 2013 detached house sales increased by 9.1% in Victoria, 10.6% in South Australia, and 7.4% in Western Australia.

Sales fell by 1.3% in New South Wales and were down by 6% in Queensland.

Over the three months to January 2013 detached house sales increased by 23.7 % in New South Wales, 10.8% in Victoria, 13.2% in South Australia, and 7.6% in Western Australia.

Detached house sales fell by 3.1% over this three month period in Queensland.