Australia's housing boom is 'languishing'

A recovery in the Australian housing market is losing momentum as those looking to compare home loans struggle to raise cash for a deposit.

According to the Globe and Mail, a report by Scotia Capital has discovered that rising food and fuel prices, along with economic uncertainty, are helping to slow down the housing boom seen in the country recently.

The Reserve Bank of Australia (RBA) has set record high interest rates which, combined with growing house prices, is leaving the property market to "languish", despite low unemployment and early signs of a strong recovery.

"While the RBA has put further rate hikes on hold for now, the eventual resumption of monetary tightening will reinforce the more muted housing outlook," the report explained.

A recent report from Deloitte Access Economics showed that retailers are also suffering as Aussies become more frugal when spending using their credit and debit cards, reported the Herald Sun.ADNFCR-1761-ID-800574945-ADNFCR