New home sales have seen a "sharp decline" in July, the HIA has indicated.

The latest HIA - Jeld-Wen New Home Sales Report has shown an 8% drop in the number of new home sales in July, marking the second consecutive month of falls. June saw an 8.7% decline in home sales.

The decline was driven by a 9% drop in detached house sales. Multi-unit sales, meanwhile, increased 1%.

"The July sales result reinforces the marked deterioration in new home building conditions that is so glaring in mid-2011," HIA chief economist Harley Dale said.

In light of the declines, Dale argued home buyers could benefit from the weak market.

"A competitive building market, less pressure on skilled trades and steady interest rates combine to mean that if you're in a financially sound position to do so, now is a particularly good time to build a new home," he remarked.