First Home Buyers Last Minute Rush

New home sales soared in August to a new high as a wave of first home buyers rushed into the market (NSW struggling though).

Nationally, new home sales jumped 11.4 per cent in August, from a 0.1 per cent rise in July. First time buyers are taking advantage of the Federal Government's $21,000 first-home buyer grant boost before it is reduced at the end of the month.

After September new home sales could fall into a slump and the RBA will be keeping an eye on this market to see if it can hold up post-stimulus. The need to see clear evidence that the economy is growing without fiscal help will keep the RBA on the sidelines next month I believe.