The number of new home sales rose in April but Housing Industry Association (HIA) says more interest rate cuts are needed for a sustained recovery in the housing sector.

The HIA on Tuesday said new home sales rose 6.9 per cent in April, seasonally adjusted, following a 9.4 per cent fall in March.

The HIA survey showed national detached house sales rose by 6.4 per cent in April while multi-unit sales were up 10.3 per cent.

HIA chief economist Harley Dale said the housing sector was so weak, the industry could have its own recession this year.

“We keep hearing that Australia is one of the world’s strongest economies in aggregate. That’s a redundant concept if people on the ground aren’t feeling and experiencing that, and they haven’t been for quite some time,” Dr Dale said in a statement.

The Reserve Bank of Australia (RBA) reduced the official interest rate by 0.5 per cent in May after two consecutive cuts, each of 0.25 per cent, in November in December.

The RBA is widely expected to keep the cash rate at 3.75 per cent at its board meeting on June 5.

“Further interest rate cuts are required and the Reserve Bank should just get on with the job on June 5,” Dr Dale said.

“However, rate cuts are not a panacea and the key to a housing recovery lies with governments at all levels.”