SYDNEY - Australian new home sales fell 4.6 per cent in May, reversing all the gain seen the previous month.
The Housing Industry Association's senior economist, Harley Dale, said the decline in sales across Australia would have been far more significant in May were it not for the strong showingfrom the New South Wales market, where sales jumped 40 per cent.
"New South Wales was the star in May. Nevertheless, new home sales across the country are still looking more vibrant when compared to the fairly dismal showing we had to endure in late 2004," Dale said.
Sales fell 7.2 per cent in South Australia, 5.2 per cent in Victoria, and 1.4 per cent in Western Australia.
The HIA new home sales survey is compiled from a sample of the largest 100 residential builders. The May report gelled with the HIA's longer-term view for a soft landing in the once high-flying housing market.
In its 2005-2006 outlook, published on Monday, Dale said slower times were ahead but doom and gloom predictions for the industry were well wide of the mark.
HIA estimated housing starts had fallen by 12 per cent in 2004-2005 and would drop by a further 4 per cent in 2005-2006, to a level of around 145,600.
The association looked for house prices to continue to stabilise, though added there was little prospect of capital growth in housing for some years ahead.
