New home sales have resumed their downward momentum after two months of gains, falling in June to their lowest level since October 2013.
A survey of Australia's largest home builders by the Housing Industry Association shows new home sales declined 6.9 per cent in June, following a 0.8 per cent and 1.1 per cent increase in April and May respectively.
Sales of detached houses were down 5.8 per cent and multi-unit sales 10.7 per cent lower, contributing to the overall decline in June.
Queensland recorded the worst decline in detached home sales, sliding by 29 per cent, followed by a 24 per cent fall in South Australia and nearly 10 per cent in NSW.
However, home sales rose 21 per cent in Western Australia and four per cent in Victoria.
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The reduction in overall sales underscored the trend underway since sales peaked in early 2015, HIA Senior Economist Shane Garrett said.
"The fall in sales needs to be considered against the backdrop of residential building coming off a record peak of activity in 2016," he said.
"These results support HIA's latest set of forecasts that new dwelling commencements are set to continue easing until late 2018."
