The number of new homes sold rose for a second straight month in November led by sales of detached houses, a report says.
The Housing Industry Association new home sales report said new home sales rose 4.7 per cent in November.
Detached house sales rose 7.7 per cent in November, while multi-unit sales fell 6.9 per cent in the month, the HIA report said.
"It is promising to see new home sales moving in the right direction," HIA economist Geordan Murray said in a statement.
However, Mr Murray said there was "a long way to go before we could consider sales volumes to be at satisfactory levels".
"The importance of a broad based rejuvenation of new home building to maintaining the health of the overall Australian economy has been widely acknowledged," Mr Murray said.
"But at this stage, new home sales sits among a host of indicators that are yet to provide conclusive evidence that we are on track to achieve this."