A recent survey has shown that new home sales have posted the largest monthly increase in more than three years in August due to a fresh wave of first home buyers entering the market.
The housing Industry Association (HIA) report found new home sales rose by 11.4 per cent in August. Sales of detached houses were up 11.8 per cent, while the number of apartment units sold increased by 7.5 per cent in the month. New home sales have been broadly flat over the previous two months.
Harley Dale HIA's chief economist stated that the first home buyers were still having a positive impact on new home sales.
New home sales rose by more than 11 per cent in August, the best monthly result for over three and a half years.
The temporary boost is due to be sealed back to $10,500 and $14,000 respectively from October 1.
The HIA report stated that the impact of these measures would still be felt even after the temporary boost was wound back.
Borrowing costs have also been reduced significantly after the Reserve Bank delivered 425 basis points, or 4.25 percentage points, worth of interest rate cuts between September last year and April.