New home sales continue to shine

New home sales continued to rise in April, a further sign of strength in the housing market.

New home sales continue to soar, serving as a key support for Australia's economic growth.

Sales were up 2.9 per cent in April, figures released by the Housing Industry Association on Thursday show.

Detached house sales rose 1.8 per cent from the previous month while multi-unit sales were up 9.3 per cent.

This comes after data on Wednesday showed strong growth in housing construction was helping to alleviate the pain from the wind down in mining investment and engineering construction.

"The recovery in new home building is a key plank in Australia's economic growth," HIA chief economist Harley Dale said.

Momentum in new home building activity would carry over into the June quarter, Dr Dale said, while new home sales and building approvals would "provide crucial insight to the growth prospects for the broader economy in 2014/15".


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Source: AAP


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