A survey of 100 of Australia's largest residential builders shows sales of new homes in Perth fell 1.8 per cent in September.
Nationally new home sales were down 14 per cent in the September quarter, according to the HIA Jeld Wen survey.
Sales over the month were up 0.6 per cent nationally.
The survey claims to capture 17 per cent of Australia's new home building industry.
It found new home sales in NSW rebounded 5.9 per cent in September after three monthly declines, while detached houses in Queensland grew by 3.6 per cent.
In Victoria, monthly sales fell 3.1 per cent and detached house sales fell 12.7 per cent.
South Australian new home sales fell 4.6 per cent in September.
Queensland sales grew by 3.6 per cent.
HIA chief economist Harley Dale said that that leading indicator signaled a contraction in new home building in the post stimulus environment of 2011.
He said heightened speculation about interest rates has been damaging housing sentiment and activity.
"The appropriate decision for the Reserve Bank next Tuesday is to keep the cash rate on hold," Mr Dale said.
