New home sales increase in WA

Stock image.
Stock image.

WA new home sales rose 1.5 per cent in June, according to the HIA New Home Sales report.

The report, a monthly survey of the largest volume home builders in the five largest states, showed new home sales rose 2.2 per cent across Australia, the first increase this year.

Victoria was the only state to record a decline.

HIA principal economist Tim Reardon said despite the monthly bounce in June, new home sales during the entire 2017/18 financial year were 5.3 per cent lower than in the previous financial year.

“The increase in sales in June is small in comparison with the fall in sales that has occurred throughout 2018,” he said.

“New home sales for the first six months of this year are 2.9 per cent lower than in the last six months of 2017.

“The deterioration of sales over the financial year reflects the shifts in housing market conditions.

“The availability of credit has tightened over the past 12 months with banks responding to the decline in house prices and the Banking Royal Commission.

“Even after this slow-down, overall building activity remains elevated when compared with building levels over the past decade.”