- March 4, 2011
- Posted by: admin
- Category: Enconomy, House prices, Interest rate, Wealth
|New home sales grew modestly last month, suggesting the property market is on track for a full recovery.According to the latest Housing Industry Association – JELD-WEN New Home Sales Report, the number of new homes sold increased by 2.5 per cent in January 2011.
Detached house sales increased by 2.2 per cent while the sale of multi-units rose by 5 per cent.
The modest increase in new home sales in January is encouraging.
New homes were smashed in 2010 by rising interest rates and a lack of policy reform to wind back the impact of the dead hand of regulation on new housing costs.
New dwellings being constructed are expected to be lower in 2011. However, the prospect of official home loan interest rates holding for some time, signalled by the Reserve Bank, could help to mitigate the decline in new dwelling starts and slow further widening in Australia’s new housing shortage.
If you’re looking at upgrading or buying and investment property I would suggest getting in now before you pay a premium for it.