New home sales are expected to finish the year strong, despite a dip in November, according to the Housing Industry Association (HIA).

It’s predicted that by the end of 2024, new home sales will surpass those of 2023.

The latest HIA New Home Sales Report reveals an 8.8% increase in October, followed by a 10.1% decline in November.

HIA Economist Maurice Tapang says that, despite these fluctuations, market confidence has improved throughout 2024 and expects this positive trend to continue into 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.”