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ISCOVER
Belinda Luc
A drop in investor activity in August has forced housing finance figures to flatten out.
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According to the Australian Bureau of Statistics, the number of commitments for established housing increased just 1.4 per cent in August, in seasonally adjusted terms.
Meanwhile, the value of investment housing commitments fell by 3.9 per cent in August 2010.
Real Estate Institute of Australia president David Airey said while investment housing had been "the bright spark" of housing finance earlier this year, this is no longer the case.
"We are seeing the cumulative effect of six increases in official rates between October last year and May this year and concerns about further increases in the months ahead, particularly from first home buyers and investors" Mr Airey said.
"The message for the Reserve Bank is clear, the latest finance commitments confirm a flat housing sector with no further tightening of monetary policy necessary," he said.
