IN September new detached house sales fell by 15.1 per cent in Western Australia, according to the Housing Industry Association.
The association’s senior economist Shane Garrett said the decline in new home sales, which started in 2015 continued with a 6.1 per cent reduction during September.
NSW with an increase of 3.7 per cent was the only state to record growth in new detached house sales compared with August.
While WA experienced the biggest reduction in sales during September Queensland sales fell by 8.7 per cent.
New detached house sales also fell in Victoria (by 2.3 per cent) and SA (by 1.7 per cent) during September.
The results are contained in the latest edition of the HIA New Home Sales Report the market’s leading gauge of sales activity in residential building across the five largest states.
During September 2017, new detached house sales fell by 4.5 with a reduction of 16.7 per cent on the multi-unit side of the market.
“The decline in home sales over the past 18 months reflects the slowing in output across the economy and is a guide to short term activity in the residential building industry,” he said.
“New home sales is a leading indicator of approvals data and shows that building activity peaked in March 2016 following the longest ever upturn in new home building.
“This process of adjustment will involve quite sizeable reductions both in building activity on the ground.
“We expect that activity will bottom out sometime in 2019 with a recovery then setting in – assuming the economy reverts to its long-term average growth rate of around 3 per cent.’’