New home sales slumped in January, posting their biggest ever monthly fall since records began in October 2000, a survey of Australia’s 100 largest builders shows.

Sales of new homes fell 7.3 per cent in seasonally adjusted terms in January this year, dragged lower by a slowdown in Victoria, HIA-JELD-WEN new home sales figures show.

New home sales in Victoria fell in January to 1675, their lowest level since November 2006.

“Victoria for a long time propped up new home building in Australia and now the reverse is occurring,” said Harley Dale. “New home sales, along with other leading housing indicators, are showing that other large markets in Australia are not filling the void.”

The Reserve Bank's interest rates cuts in late 2011 had failed to stimulate new home building, Mr Dale said.