Sales of new homes jumped to a two-and-a-half-year high, adding fuel to hopes a recovery is underway in the residential construction sector.

New Home sales grew by 7.5 per cent in November, according to figures released by the Housing Industry Association on Friday. More than 7,000 new dwellings sold during the month, a level not seen since May 2011. It was the fastest monthly growth rate since January 2010, HIA said. [caption…