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SALES of new homes rose for a third straight month in March – with a 7.3 per cent jump in WA – as government grants and low interest rates enticed buyers into the housing market, a survey shows.

The Housing Industry Association survey found new homes sales increased by 4.2 per cent to 8210 homes following a 7.8 per cent rise in February.

Purchases of detached homes rose by 4.1 per cent to 7474 houses in March, with a quarterly rise of 17 per cent, HIA reported.

HIA chief economist Harley Dale said the project home building market gained a lift from the first-homeowners’ grant (FHOG) and low interest rates during the first quarter of 2009.
The first-home owners’ boost for new dwellings is clearly lifting residential building activity and securing jobs within the Australian economy,” Dr Dale said.

In mid-October, the Federal Governmentdoubled the FHOG to $14,000 for established dwellings and tripled it to $21,000 for newly- built homes.

The Reserve Bank of Australia lowered the cash rate by four percentage points to 3.25 per cent between September and February. Subsequently, on April 7 the RBA cut official interest rates by 25 basis points to three per cent – a 49-year low.

Dr Dale said the Federal Government should consider whether to stop the boost to the FHOG, as originally planned for June 30.

Loans to first-home buyers posted a record 26.9 per cent of housing approvals in February, according to data from the Australian Bureau of Statistics.

Sales of units rose by 4.7 per cent to 736 in March, yet sales in the sector were down by 14 per cent in the first quarter of 2009.
The first-home owners’ boost for new dwellings is clearly lifting residential building activity and securing jobs within the Australian economy,” Dr Dale said.

In mid-October, the Federal Governmentdoubled the FHOG to $14,000 for established dwellings and tripled it to $21,000 for newly- built homes.

The Reserve Bank of Australia lowered the cash rate by four percentage points to 3.25 per cent between September and February. Subsequently, on April 7 the RBA cut official interest rates by 25 basis points to three per cent – a 49-year low.

Dr Dale said the Federal Government should consider whether to stop the boost to the FHOG, as originally planned for June 30.

Loans to first-home buyers posted a record 26.9 per cent of housing approvals in February, according to data from the Australian Bureau of Statistics.

Sales of units rose by 4.7 per cent to 736 in March, yet sales in the sector were down by 14 per cent in the first quarter of 2009.
The first-home owners’ boost for new dwellings is clearly lifting residential building activity and securing jobs within the Australian economy,” Dr Dale said.

In mid-October, the Federal Governmentdoubled the FHOG to $14,000 for established dwellings and tripled it to $21,000 for newly- built homes.

The Reserve Bank of Australia lowered the cash rate by four percentage points to 3.25 per cent between September and February. Subsequently, on April 7 the RBA cut official interest rates by 25 basis points to three per cent – a 49-year low.

Dr Dale said the Federal Government should consider whether to stop the boost to the FHOG, as originally planned for June 30.

Loans to first-home buyers posted a record 26.9 per cent of housing approvals in February, according to data from the Australian Bureau of Statistics.

Sales of units rose by 4.7 per cent to 736 in March, yet sales in the sector were down by 14 per cent in the first quarter of 2009.
New home sales rose by 15.2 per cent in New South Wales in March, with Victoria up 14.6 per cent and WA 7.3 per cent higher.

South Australia had a 4.6 per cent fall in new homes sales during March, with Queensland down 16.9 per cent following a 26.2 per cent rise in February.

CommSec economist Savanth Sebastian said the lower mortgage rates and the June 30 first home buyers deadline is likely to boost demand for property in coming months, but prices will be held back to a large extent by worries about job prospects.

CommSec is forecasting unemployment to rise to 6.5 per cent over the next year. The national jobless rate is now at 4.9 per cent.

Loans to first homebuyers posted a record 26.9 per cent of housing approvals in February, Australian Bureau of Statistics (ABS) data showed.

“While the rate of growth in sales reflects to an extent the low base from which a recovery is emerging.

“There is no doubt that the previously mentioned triple boost from low interest rates, stimulus to first-home buyers, and builder discounts have injected some life into a previously moribund new home building market,” the HIA reported.
http://www.inmycommunity.com.au/property/

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