Sales of new homes almost doubled in March, the second strongest monthly result since 2004, as buyers rushed to access the final phase of the HomeBuilder grant before the scheme ended.
A similar buying frenzy was recorded in December, which pushed the monthly sales volumes up by 92% – a near record, amid a scramble to get the full $25,000 HomeBuilder grant before that stage of the stimulus finished.
“This same effect was evident in March as households raced to get access to the $15,000 grant,” HIA economist Angela Lillicrap says. “HomeBuilder, combined with changing population dynamics and improving market confidence, led to strong sales through to the end of 2020.”
The reduced HomeBuilder grant finished on March 31, although the Federal Government has extended by 12 months the deadline for work to start on dwellings contracted under the program. The HIA says the extension will unleash an unprecedented national surge in housing construction, with every state booming above its previous peak.