In March 2015, total seasonally adjusted new home sales increased for a third consecutive month, by 4.4 per cent. During the March 2015 quarter, total new home sales increased by 3.5 per cent to their highest level in over four years.
This strong rise in new home sales follows the further reduction in lending rates off the back of the February cut to the official cash rate. The May reduction to the cash rate, down to a new historic low of 2.0 per cent, should provide further impetus for new home sales activity.
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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.
