New Home Sales Increase in December

Australia enjoyed its third consecutive monthly rise for new home sales in December, according to the Housing Industry Association (HIA).

The New Home Sales report by the HIA, found that seasonally adjusted sales of new properties increased 6.2 per cent in the final month of 2012 - with sales up 3.3 per cent for the December quarter.

HIA economist Geordan Murray said that the rise can be attributed to sales in both detached and multi unit real estate, with numbers improving in most states.

He explained: "The promising headline rise last December was driven by both detached house and multi-unit sales.

"Furthermore, if we look at the underperforming market for 2012 - detached houses - the December improvement was broad-based as sales increased in all but one of the surveyed states."

Mr Murray added that those sales have bounced back from lows seen in 2011 - increasing 24.1 per cent over the entirety of last year.

The economist continued by saying that it's hoped the coming months will see continued growth, but warned that low interest rates by themselves will not be enough to provide a total recovery.

Western Australia saw the biggest jump in new home sales in December, increasing 12.2 per cent, followed by New South Wales (7.1 per cent) and six per cent in Victoria.