New home sales fell in Western Australia by two per cent during July according to the latest HIA-Jeld-Wen New Home Sales survey released today.
Nationally, the number of new homes sold dropped for the third straight month by seven per cent in July.
Sales were down by eight per cent over the three months to July to be two per cent lower than a year earlier.
HIA Chief Economist, Harley Dale, said that the severe decline in new home sales highlighted the need for a new government to implement a housing action plan.
"There needs to be a re-doubling of efforts to reduce the impact of regulation, development charging, and excessive taxation on the cost of new housing supply," Dr Dale said.
"This action needs to include considerable federal level engagement, without which Australia's dwelling shortage will continue to increase, placing avoidable upward pressure on existing home prices and disadvantaging households seeking to purchase or rent a dwelling."
HIA wants the new government to state their commitment to pursuing three key policy priorities: a new housing cost reduction program, a housing and development ministry recognition and support for small business.
Detached house sales fell by 7.3 per cent in July 2010, while sales in the multi-unit sector fell by 4.1 per cent.
"Large volume builders assess that the confidence of people enquiring about building a new home weakened over the four month period to July. Clearly higher interest rates and the unwinding of fiscal stimulus have had a negative impact on new home building this year," Dr Dale said.
On a state by state basis detached new home sales fell by 12.9 per cent in Victoria, 7.6 per cent in Queensland and 3.1 per cent in New South Wales.
