New Home Sales Rise 17% in March Despite Higher Borrowing Costs

New home sales rose 17% in March, despite a rise in the cash rate and fuel prices. The growth is partly a result of increased involvement from first-home buyers who no longer require mortgage insurance. This momentum continues a trend that began in early 2025, with sales for the March quarter 31.9% higher than the same period last year. The rise in sales was driven by the rate increases occurred during the period. Two rate increases occurred. Borrowing costs rose. Demand for housing remains supported by population growth and low unemployment. Queensland recorded the strongest monthly increase in March, rising 34.3%.