New home sales rebounded slightly in Western Australia in June, following the first fall in 2014 in the previous month, according to the latest research from the Housing Industry Association.
The HIA said private detached house sales were up 2.2 per cent in the month of June, after falling by 5.6 per cent in May.
In the three months to the end of June, house sales were up by 4.1 per cent, to be 9.8 per cent higher than the same time last year, the HIA said.
At the same time, the Australian Bureau of Statistics said detached home approvals were up 1.4 per cent in May, to be 1.7 per cent higher than the previous three months and 15.3 per cent higher than the same period last year.
HIA chief economist Harley Dale said the strong annual results for both approvals and sales were the product of steady increases which had been sustained for the past two years.
"The question now is, when will sales and approvals activity peak and can the improved levels be sustained into the longer term," Dr Dale said.
"The outcomes will have obvious implications for the state's broader detached house building prospects."
Nationally, new home sales also rebounded after a fall in May, up 1.2 per cent for the month of June.
The result was largely driven by a surge in multi-unit sales, which rose 15.9 per cent in May.
Just two states recorded falls in new home sales in June – New South Wales, which fell by 3.2 per cent, and Victoria, where sales slid by 4.2 per cent.
Dr Dale said the surge in multi-unit sales was a good sign for the new residential construction market, but concerns remained in the market.
"The new home building sector will provide a healthy contribution to broader economic growth in 2014-15," he said.
"As the recovery enters its third year, the magnitude and duration of the current new home building upcycle is less certain that would usually be the case at this juncture.
"The share of medium-high density construction is higher and there are considerable delays occurring in the availability of titled land for detached and semi-detached housing."