New home sales growth was flat in April as home buyers continued to struggle with high interest rates and the rising cost of living, a housing survey has found.
The Housing Industry Association's (HIA) new home sales report, released today, said sales rose 0.1 per cent in April, following a six per cent fall in March.
April's slender increase ended two straight months of falling new home sales.
Sales of detached houses were 0.2 per cent lower, while multi-unit sales rose for only the second time in the past six months, posting a 2.4 per cent increase.
"The new home building sector was hit extremely hard in the March 2008 quarter as higher interest rate, fuel, and food bills made a further sizeable dent in housing affordability,'' HIA chief economist Harley Dale said.
"The subsequent flat outcome for new home sales in April provides the first evidence that these negative forces will remain in play throughout the June quarter as well.''
The HIA said the monthly survey was compiled from a sample of the 100 largest residential builders in Australia.
