Housing Industry Association (HIA) has announced that the number of new homes sold came roaring back in August after a flat mid 2009, according to the HIA.

Commenting on the HIA's latest survey of Australia's largest builders, HIA Chief Economist, Dr Harley Dale said that a fresh wave of first time buyer interest helped spur significant growth in new home sales in August.

"A late surge in sales to first home buyers ahead of the step-down in the new home boost, propelled new home sales by more than 11% in August, the best monthly result for over three and a half years," said Dr Dale.

"The boost to new home construction from the tripling of the First Home Owner Grant for new dwellings will be apparent throughout the second half of 2009 and well into 2010," he said.

In the month of August 2009 the number of detached house sales increased by 11.8% while the number of apartments sold rose by 7.5 per cent.

Detached New Home Sales in August increased by:

• 21.8% in Victoria, 20.9% in Queensland, and 15.1% in Western Australia.

Sales fell by:

• 11.3% in New South Wales and by 2.5% in South Australia.

29 September, 2009