WA housing market on top but slowing

WA's housing market may be the strongest in the country but it is losing momentum, according to the Housing Industry Association's latest snapshot of the residential building industry.

Based on certain indicators, including the value and number of home loans, new homes under construction and the size of the construction workforce, WA kept its top ranking for the fourth consecutive quarter.

But in contrast to nearest rival NSW's rapid market growth, WA appears to be going backward. Its total "score", as determined by the HIA's ranking system and based mostly on March figures, was sharply down.

"Irrespective of whether the wind may be coming out of the sails, residential building activity in WA is currently experiencing very buoyant conditions," the report, released today, said.

"Conditions are also good for the existing home market.

"Transfers of existing houses are 23.4 per cent above the decade average, and transfers of attached dwellings are up by a similar magnitude.

"WA ranks as the strongest in the country across both these indicators."

WA lagged most of the nation in home renovations and was last in terms of total spending.

"The healthy resurgence in activity in the established home market provides some comfort that the renovations market may begin to recover over the upcoming quarters," the report said.

Nationally, WA ranked first overall, followed by NSW, the ACT, Victoria, the Northern Territory, South Australia, Queensland and Tasmania.

The ACT and Northern Territory had lost ground since the HIA's last report.

NSW, Queensland and Tasmania had improved.

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