The cautious consumer. The almost daily predictions of an interest rate rise seems to be having an impact on sales of new houses. The Housing Industry Association’s latest New Home Sales Report, a survey of Australia’s major residential builders, shows that the number of new houses sold in June 2011 dropped by 8.7%, the sharpest monthly decline since May 2006. In June detached new house sales fell by 1.8% in New South Wales, 10% in Victoria, 17.1% in Queensland and 6.3% in Western Australia. Sales were flat in South Australia.

“There has been widespread anecdotal evidence for some time that new home demand hit a wall in mid-2011 and today’s new home sales figures unfortunately confirm that situation,” said HIA chief economist Dr Harley Dale. “Evidence is mounting that weakness in the new home sector is accelerating even with interest rates on hold. Amidst the roller coaster of interest rate sentiment that has unnecessarily become the norm in 2011, the idea that an imminent rate hike is now unavoidable is misplaced.”

The HIA report on new housing sales follows the recent RP Data-Rismark home value index showing that across the combined capital city housing markets, the rate of home value declines continued to moderate with values in June falling 0.2% in seasonally adjusted terms. The relatively flat June result follows month-on-month drops of 0.3% in May, 0.4% in April and 0.5% in March.

A holidaying hypocrite. It was probably time for Tony Abbott to take a holiday. The media was getting bored with his daily photo opportunities at which he repeated his mantra that there would be no big new carbon tax under an administration led by him. One day last week there was not a solitary television camera to record his non-event, which made it all rather pointless. Under the circumstances hopping on a plane to Europe with members of his family was the sensible thing to do.

It would have been even more sensible, however, if he had not chosen to have a parting shot last week at Julia Gillard actually spending a few days in the office playing Prime Minister rather than participating in the fluoro jacket charade. Declaring that she was running away from the debate, the Opposition Leader came out with his catchy line that “not only did she not wear out the shoe leather, she didn’t even wear the shoes in” as, “at the first sign of a blister she’s back in her office hiding from the public”. Those words were more than a touch hypocritical coming from a man about to set off on an international holiday.

Rupert to hang on as boss. Speculation that Rupert Murdoch will be replaced as head of News Corporation is diminishing. The market at Intrade now puts the probability of him departing before December 31 at only 18.6% after reaching a high point of 30% late last month.

A win in the culture wars. At least the West is winning one part of the culture wars with China. Wine is now the celebratory drink of choice.

Back in the days when I was a regular visitors — some 30 years ago now — the obligatory toasts were in the local fermented sorghum called Maotai with the lingering taste of soy sauce on the back palate.

A nomination worth seeking. With President Barack Obama now trapped by a Republican House of Representatives into decisions that will ensure that unemployment in the United States remains at a high level, the chances of his re-election next year have declined. The Republican Party nomination will consequently be more keenly sought.

The Texas Governor James Richard “Rick” Perry is now the favourite on the Crikey Republic Candidate election indicator.