New house sales steady
While Housing Industry Association figures reveal NSW experienced a 14.7 per cent drop in new house sales in October, sales are staying steady on the North Coast.
Aaron Donnelly, of Byron Bay, said building new homes had kept him in work, while some other builders had found themselves without a job due to the hard economic times.
“Things have kept pretty steady for us, they certainly haven’t dropped,” he said.
Sales and design consultant with Integrity New Homes at Ballina, Murray Glass, said an increase in land supply on the coast had contributed to keeping new house sales steady.
He said sales had also benefited from the 1per cent drop in interest rates and the tripling of the First Home Owners’ Grant in mid-October.
“We have had an increase in enquiries in the past six weeks,” Mr Glass said
“Sales are slowly climbing. The gap between rent and home repayments is decreasing, making homes more attractive to buy,” he said.
HIA chief economist Harley Dale said while an overall increase in new house sales of 6.7 per cent had been recorded, activity in the multi-unit sector was down by more than 8 per cent, indicating investors were still sitting on the sidelines.
“Both new home sales and building approvals fell sharply over the first nine months of 2008,” Mr Dale said.
“It is hoped that an improvement in new home sales in October could mark the beginning of a stabilisation.”
Lennox Head real estate agent Brett Jones, of PRD Nationwide, said the Ballina Heights area was experiencing a particular rise in new house sales.
“We are seeing some strong performance from out there,” Mr Jones said.
“There are a lot of new houses going up on the recently released land out there.
“Interest rate drops and the increase in the First Home Owner Grant for new houses have both contributed to the rise in new home sales, as well as rents being on the increase.”
He said those factors contributed to making buying a new home more enticing.
A HIA survey recorded a 6.7 per cent jump in new house sales around in October.