New home sales figures released by the Housing Industry Association of Western Australia today, show a 10.4 per cent rise in the sale of new homes among WA's largest builders in November.
Sales have, however, been flat to weaker in 2007 overall and this result highights the need for actions to increase the supply of affordable dwellings.
HIA executive director WA Sheryl Chaffer said it was certainly a positive step for Thursday's Council of Australian Government meeting to discuss the federal government housing commitments including the National Affordable Rental Scheme and the Housing Affordability Fund, both aimed at increasing the supply of new dwellings.
"The Federal Government election commitments are rightly targeting measures to increase supply. Measures announced, involve proponent based programs offering rewards for local and state governments that offer innovative solutions that cut red tape and deliver efficiency dividends aimed at reducing supply costs," said Ms Chaffer.
Private sector detached house sales in WA fell by 2 per cent over the three months to November this year.
"Throughout the year new home sales in WA have remained flat at best, signalling a short term widening of the gap between housing supply and demand," Ms Chaffer said.
"New home sales, like other leading indicators including housing starts, are struggling amidst high structural costs to the provision of new housing and rising interest rates," added Mr Chaffer.
HIA's New Home Sales Survey is compiled from a sample of the largest 100 residential builders in Australia and is the first leading indicator on new housing activity released for each month.
