New home sales in Queensland have jumped more than 20% in October sparked by a 1% cut in interest rates and the increased government?s First Home Owners Grant. The latest Housing Industry Association survey of major builders found the industry was looking up after a sluggish first nine months of the year. The spike is not across all sectors nationally with multi-unit sales down 8%.
No Sunshine Coast specific figures are yet available for October but in the September quarter of this year, 644 new houses were approved in the region compared with 848 in 2007, a fall of 24%. In defiance of national trends, 470 units were approved in September, 2008, quarter compared with 302 in 2007, an increase of 55.6%. Housing Industry Australia Sunshine Coast and Wide Bay manager Adrian Langford said there had been a significant increase in activity among building certifiers and designers this month which was starting to flow through to builders. Mr Langford said most activity was in the affordable housing range indicating that the first home owners? grant scheme was working and getting people back into the market.
He said renovation inquiry was also picking up and there was a buoyancy about consumer attitudes although lending institutions were being very tough on valuations, indicative of the economic climate.HIA chief economist Harley Dale said the national result saw an increase in new home sales among Australia?s largest builders and developers for the first time since June. 'Both new home sales and building approvals fell sharply over the first nine months of 2008,' he said.
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