Western Australia recorded the largest dip in new home sales in Australia in July, but the housing industry says the sector remains healthy thanks to significant gains made earlier this year.
The Housing Industry Association-JELD-WEN New Home Sales report, released today, showed the level of home sales in WA in the three months to July was 6.4 per cent higher than the previous three months, and 41.7 per cent higher than the same time last year.
Sales for the month of July, however, fell by 14.4 per cent.
“Overall you have to say that new detached house sales have been relatively healthy this year,” HIA chief economist Harley Dale said.
“Western Australia still stands poised to see new home building continue to grow, which is entirely appropriate for the state that is home to the fastest population growth and a recent chequered history with housing affordability.
“Despite this latest monthly decline in sales, we expect the overall upward trajectory to continue.”
Nationally, new home sales posted a similarly disappointing result in July, dropping 5.6 per cent.
Western Australia led the way with its 14.4 per cent fall in July, while NSW sales fell by 6 per cent, Victorian sales by 4.6 per cent, and South Australian sales fell by 8.9 per cent.
Queensland bucked the trend with a rise of 11.q per cent in July.
Dr Dale said consistently weak consumer and business confidence was weighing heavily on new housing investment.
“Combine that low confidence with very tight credit conditions and excessive taxation, and you have the unpalatable recipe for the recessionary conditions facing new housing,” he said.
“Leading indicators suggest this situation will persist well into 2012/13.”
