Units blowoff outweighs fading new house sales

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From the HIA comes February new home sales

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In February 2015 total seasonally adjusted new home sales increased by 1.1 per cent, following the previous month’s rise of 1.8 per cent. This development brings overall sales to a new cyclical high. New home sales in February just exceeded the previous peak in April 2014 – by 0.2 per cent.

The latest rise in new home sales occurred against the backdrop of the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate to a new historic low of 2.25 per cent. Private lending rates subsequently declined also (even if with varying degrees of delay).

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.