Australian Housing Market "pushing the envelope"

CEO of Hometrack says the Australian market has been pushing the envelope in terms of leverage. "We have been willing to assess people's ability to repay a loan in a very accommodating way", he says.
Meanwhile the number of new housing starts is some 25% lower than it has been over the last decade. The value and number of new home loans were, for much of last year, at record levels, due to the various stimulae. But as interest rates have risen and the government grants have diminished, new home loans are falling in both value and number.
Comsec's chief economist places NSW at the bottom of the states in terms of economic performance.