New home sales are tipped to end the year on a high despite a softening in November, according to the Housing Industry Association. It is predicted that by the end of 2024, new home sales levels will be higher than those recorded in 2023. The latest HIA New Home Sales Report shows sales were up 8.8% in October before a 10.1% fall in November.

HIA Economist Maurice Tapang says despite those fluctuations, all indicators show an improvement in market confidence through the course of 2024. And he believes the market will continue to improve in 2025. “Stabilising home building materials costs, a return to normal build timeframes, low unemployment and unchanged cash rate settings have provided the certainty that new home buyers need,” Tapang says.

“The rise in sales has been geographically dispersed, with markets such as Queensland, South Australia and Western Australia faring better than the two largest states. As the volume of established homes available for purchase and rent remains inadequate to service growing demand, buyers are increasingly returning to the new home market.”