Sales of new homes rose 1.6 per cent in May, new industry figures show. Source: AAP
SALES of new homes are continuing their rise from the lows experienced in 2012.
New home sales rose for the fourth month in a row, with a 1.6 per cent improvement in May, taking monthly sales to their highest level in a year and a half, the Housing Industry Association (HIA) said on Wednesday.
HIA chief economist Harley Dale said there was solid evidence of modest growth in new residential construction and that was expected to continue into the new financial year.
"That outcome was important, following as it did a sustained period of weakness which saw activity in a majority of markets reach, historically, very low levels," he said.
"The key is whether a new home building recovery can be sustained, and at a growth rate sufficient to meaningfully assist the Australian economy with its rebalancing acts."
As mining and resource investment falls it's hoped other parts of the economy will pick up pace - rebalancing the economy.
Dr Dale said government help in increasing the supply of new housing was needed to help the Australian economy make the transition.
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