The Housing Industry Association's monthly survey of new home sales showed a 6.1 per cent increase in seasonally-adjusted new home sales. But for the three months to November 2016, the total number of new home sales was down by 0.7 per cent to be down 0.2 per cent compared with the same three month period in 2015.

Sales of new detached houses rose 5.2 per cent in November, while sales of new apartments increased 9.3 per cent, according to the report.

The seasonally-adjusted numbers showed that sales of new detached houses increased in four out of five mainland states during the month. The exception was New South Wales, which saw a decline of 5.9 per cent in the sale of new detached houses.

HIA Chief Economist, Dr Harley Dale, said the construction market for new homes is strong.

“Following a dip to a two-year low last October, the November bounce in new home sales is a reminder that the national new home construction sector remains in strong shape,” he said.

Dale said ABS building approval and housing finance data indicates the outlook for the sector is also positive, though he acknowledges it has "passed its peak".

“At this stage of the new home building cycle that’s a very impressive result – this is already the largest and longest national new home construction cycle in history,” he said.

Dale warned that "without the boost from housing over the last five years the domestic economy would have at some point slipped into recession.”

Dale predicts a decline in construction activity. “The declines in construction activity will inevitably become chunkier,” he said.

In November 2016, sales of new detached house sales increased by 17.9 per cent in Queensland, 4.7 per cent in Victoria, 4.2 per cent in Western Australia, and 4.0 per cent in South Australia.

See also:

Housing unexpectedly bites into GDP

Apartments to bear the brunt as housing comes off a record peak, HIA

HIA new home sales fall to two-year lows