The latest HIA New Home Sales Report predicts a good year ahead for the new home building sector.

The HIA’s survey of Australia’s largest volume builders says the sector remains strong.

“Monthly sales volumes remained strong throughout 2014, following the recovery that characterised 2013,” wrote HIA Economist, Diwa Hopkins.

“The number of sales in 2014 was 14.4 per cent higher than in 2013.”

“This year will be another healthy one for the national new home building sector,” Ms Hopkins said.

“The two key leading indicators of new home building activity, new home sales and residential building approvals, both saw increases during the December quarter of 2014.

“This is a clear indication that actual residential construction activity will rise in the current early months of 2015, which is good news for the broader domestic economy in addition to the housing sector.”

“A key change in conditions to the residential construction sector in 2015 is the February cut to the official cash rate to a new historic low,” she said.

“However, it should be noted that this cut was made in the context of a mooted tightening of lending conditions in parts of the housing market.”

An extract of the HIA report is accessible here.