New home sales have recorded a bounce following a protracted weak period mid this year, according to the Housing Industry Association (HIA).

 

"A 3.4 per cent increase in new home sales in October is a modest result, but at least it is a move in the right direction,” HIA’s Chief Economist Harley Dale said.

 

The HIA’s New Home Sales report showed a 31.4 per cent increase in the sale of multi-units in October, while detatched sales recorded a modest decline of 2 per cent.

 

“Scratching below the surface, new home sales in October were a mixed bag. Within the weak headline result for detached houses there were modest increases for New South Wales, South Australia, and Western Australia, albeit from very low bases,” Dr Dale said.

 

In October 2012 the number of seasonally adjusted new detached house sales  increased by 4.7 per cent in New South Wales,  3.2 per cent in  South Australia,  and 3.7 per cent in  Western Australia. Detached house sales fell by 12.1 per cent in Victoria and were down by 4.3 per cent in Queensland.