Western Australia has suffered the largest fall of new home sales in May as national sales declined for the first time in four months, a survey shows.
The number of detached new home sales in the state dropped 13.5 per cent in May, according to figures released by the Housing Industry Association today.
Sales in New South Wales fell by 9.9 per cent and 8.7 per cent in Victoria, while sales in Queensland and South Australia grew by 2 per cent and 3.6 per cent respectively.
Nationally, sales fell 5.7 per cent in May after rising for the first four months of 2009 .
"The small pull back in sales in May is likely to reflect a plateauing of first home buyer activity combined with continued weakness in the trade-up and investor markets," HIA said.
The May result was underpinned by a 6.8 per cent fall in detached home sales.
The number of unit sales rose by 6.1 per cent.
HIA senior economist Ben Phillips said the May figures showed it would take more than first home buyers to support a recovery in home building activity.
"The vast majority of the housing recovery has been at the first home buyer end of the market," Mr Phillips said in a statement.
"As that segment inevitably slows over the remainder of 2009 it's vitally important that the much larger trade-up and investor segments return to health."
The federal government increased the first home owner grant in October last year to $14,000 for established homes and $21,000 for new homes or for those who wished to build their own home.
The temporary boost will be scaled back $10,500 and $14,000, respectively, after September 30.
The HIA survey covered 100 of Australia's largest builders and developers.
