But despite the overall upturn in new home sales, growth in Australia's housing market remains patchy. "New detached house sales were up in Queensland and Western Australia but it continued to weaken in the resource-poor New South Wales and Victoria," said Harley Dale, chief economist with the HIA. "New home sales in the big south eastern states have been weakened by the higher interest rate climate. These data, like all housing indicators, are continuing to highlight the vast differences evident across Australia," he said. Dale added that the NSW and Victorian housing markets is likely to soften further through the rest of the year amidst anecdotal evidence suggesting these states were hit hard by the second interest rate hike in August.

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