New Homes Sales Rise 2.8 percent in Australia

New home sales in Australia rose for a second consecutive month in June, due to a surge in multi- units dwelling sales, the Housing Industry Association (HIA) said on Monday.

The HIA New Home Sales report showed a 2.8 percent rise in June.

The report found that national detached house sales increased by 0.7 percent in June following a decline of 2.0 percent in May.

However, multi-unit sales in June jumped 15.7 percent.

HIA chief economist Harley Dale said it was encouraging to see a second month of growth in new home sales across Australia.

“It is, however, a stark reminder of how much catching up is left in the multi-unit sector when a lift of this magnitude still leaves sales volumes 36 percent below their 10-year average,” Dale said in a statement.

He said lower interest rates would assist new housing in the financial year of 2013, but the gap between the cash rate and variable mortgage rates would reduce their positive impact.

“Investment and reform from governments is the key ingredient to lifting the new housing sector substantially above the recessionary levels of 2012,” Dale said.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza