Australian Home Loans Slide to a Nine-Year Low

August 11, 2010, Australia - VICTORIA has come out as the only good state in an otherwise depressing national housing market in which home loans have slid to a nine-year low.

Last June, there were fewer than 47, 000 Australians are approved for home loans, the lowest figure recorded since February 2001. This is well down on the 64,000 who borrowed for housing as recently as last September before six interest rate rises and the phase-out of the first home owners' boost.

Since September, Victoria has cast just 16 per cent of home borrowers, compared in New South Wales with 30 percent and 28 per cent nationwide.

As the figures were publicly announced, Treasurer Wayne Swan and his opposition counterpart Joe Hockey were interviewed at the National Press Club if the prices of the houses were too high, too low or about right. Neither acknowledged the question.

According to Mr. Swan, the shortage of houses is due to planning and zoning regulations. He said, ''The truth is, not enough are being built.'' He also added that the government had expended in social housing and was coordination with the Council of Australian Governments to increment the house supply.

According to Mr. Hockey, the government debt is the primary issue why it was hard for home builders to get sufficient funds.

''It is incredibly difficult for them to get finance, and it is incredibly expensive, and one of the reasons is the federal government is in there competing for funds because we are running a deficit and we have got a debt,'' he said.

Source: The Sydney Morning Herald News