Western Australia's new home sales market has been labelled Australia's most disappointing, according to the Housing Industry Association’s latest report.
The HIA-JELD WEN New Home Sales report showed WA’s sales declined 12.7 per cent over the month of July, to be down 18.9 per cent over the past quarter.
Nationally, new home sales dropped by 8 per cent over July, for a 7.1 per cent fall over the quarter.
Sales dropped by 8.5 per cent in Queensland over July, 7.8 per cent in Victoria, and 11.2 per cent in New South Wales.
The HIA said the numbers illustrated a short-term need for new housing stimulus.
For Western Australia, the HIA said the results held a silver lining.
“The (close to) good news is that WA has had worse quarters of sales volumes in recent memory,” the HIA said.
“There is now the question of whether sales in WA will scuttle along the bottom or mount a sustained recovery.”
The HIA said any recovery would likely have to be triggered by government policy action.
“Should the increasing prospect of interest rates being on hold for the remainder of 2011 come to fruition, then that would be a good start, but probably as a calming influence rather than a catalyst for change.”
