Commonwealth Securities (a stock broker here in Australia) commenting on the house sales data today
- While housing construction activity will remain at high levels over the first half of 2016
- An easing of activity is in prospect over the second half of the year
- There is a huge amount of new housing stock to be absorbed over the next few years
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While house buyers will welcome the overhang, a slowing of construction could prompt concerns from the RBA, which is looking to new sources of growth in the wake of the slowing mining investment boom.
