The number of new home sales rose for the third consecutive month, thanks to a surge in multi-unit dwelling sales.

The Housing Industry Association (HIA) on Monday said new home sales rose 2.8 per cent in June, seasonally adjusted, following a 0.7 per cent improvement in May.

The HIA survey showed national detached house sales rose by 0.7 per cent in June while multi-unit sales jumped 15.7 per cent.

HIA chief economist Harley Dale said a third month of new home sales growth was encouraging for the weak housing sector.

“It is, however, a stark reminder of how much catching up is left in the multi-unit sector when a lift of this magnitude still leaves sales volumes 36 per cent below their 10-year average,” Dr Dale said in a statement.

“Lower interest rates will assist new housing in 2012/13, but the large gap between the cash rate and variable mortgage rates will blunt their positive impact.”

The last time the RBA cut its cash rate was in June, by a quarter of a percentage point to 3.5 per cent, following a half a percentage point reduction in May.

Dr Dale said more could be done by the government to boost the weak housing sector.

“State governments have a crucial role to play, as do local governments, but it is the federal government that needs to act first and lead by example,” Dr Dale said.