Housing market cooling rapidly

Australian housing finance commitments for owner-occupied housing fell 3.4 per cent in March, seasonally adjusted, to 48,260, said the Australian Bureau of Statistics yesterday.

The total volume of owner-occupied housing was at its lowest level since April, 2001. Commonwealth Bank senior economist Michael Workman said first home buyers had left the market. "The two big trends are (fewer) first home buyers and more established, second home buyers in the market,” Mr Workman said.

"The weakness in the data over the past six months has been the withdrawal of the first homebuyers scheme. The anecdotal evidence from real estate agents is that the activity in the market is from people who are trading up.” Workman said rising interest rates had not affected the market.

Herald Sun