New homes sales improved slightly in October, led by an increase in sales of detached houses, a survey shows.
New homes sales in Western Australia were relatively flat in the month of October, according to the latest HIA Jeld-Wen new home sales report.
Sales of new detached houses in WA rose just 0.9 per cent compared with a national increase of 2.4 per cent.
Nationally detached home sales increased by three per cent.
However, sales volumes fell in Victoria, Queensland and Western Australia over the three month period to October.
The October rise follows a downward revision in September where a 0.6 per cent gain became a 1.7 per cent decline, the survey of Australia's largest 100 builders showed.
Sales of multi-units fell by 2.6 per cent in October.
"Over the three months to October 2010, total seasonally adjusted new home sales fell by nine per cent to be down by 17 per cent when compared to the three months to October last year," the report said.
Private building approvals fell by six per cent while new home loans were down by four per cent over the three months to September 2010.
"A combination of dampened demand and restrictive supply side conditions has generated a situation where Australia's recovery in new home starts will likely prove to have only lasted four quarters, five quarters at most," the report said.
In the other states, sales of detached house sales increased by 5.9 per cent in Victoria and 7.4 per cent in Queensland.
Sales fell by 6.1 per cent in New South Wales and 1.3 per cent in South Australia.