New home sales have increased for the first time since the global financial crisis hit in 2008.
Sales rose 14.4 per cent in 2013, the first year of growth in five years, according to the Housing Industry Association's new home sales report.
In the final quarter of 2013, sales were at levels not seen since mid 2011, when activity in the housing market was being boosted by government stimulus, HIA economist Diwa Hopkins said.
"The broader trend shows a healthy profile of recovery throughout 2013 and the underlying details are also fairly encouraging," Ms Hopkins said.
"The key now will be for these improved sales levels to expand further in the year ahead."
Detached house sales in South Australia were up almost 51 per cent in the final quarter of 2013.
Sales also rose in Queensland, NSW, and Western Australia, but declined in Victoria by 9.5 per cent in the December quarter.