Morgan Stanley’s Australian housing model has fallen to fresh-record lows, pointing to the likelihood of further declines in prices and building approvals in the year ahead. And that means the risks for the RBA cash rate are slanted to the downside, according to the bank. “The strong completions data out this week completes the data set for our proprietary housing indicator, MSHAUS, which dropped again in the December quarter of 2018 to a low of -1.0,” Morgan Stanley says. “This suggests the housing market weakness seen in 2018 is likely to continue through 2019, with both prices and approvals lower.” The first chart ... (full story)