New home sales dropped in September, with detached house sales at their lowest monthly level since December 2000, new data has revealed.
According to the latest HIA - JELD-WEN New Home Sales Report, the number of new homes sold in the month of September fell by 3.5 per cent to be down by 14.0 per cent over the September quarter.
“The September figures highlight the present soft conditions facing new home building and reinforce the importance of the RBA’s decision to cut rates,” HIA acting chief economist Andrew Harvey said.
“Monetary policy is arguably the most powerful economic tool in modern open economies but interest rate cuts still take time to boost the economy.”
Detached house sales fell by 3.3 per cent in the month of September 2011 to be down by 15.3 per cent over the September quarter.
Sales of multi-units fell by 5.5 per cent in September.
“The volume of detached house sales improved in Queensland with a rise of 5.7 per cent in September, but sales fell in each of the other four mainland states,” Mr Harvey said.
“Victoria posted the largest monthly fall with sales declining by 6.6 per cent in September.”
In terms of other states, detached house sales fell by 4.7 per cent in New South Wales, 5.9 per cent in South Australia and 3.5 per cent in Western Australia.