The Federal Government must build at least 500,000 new houses by 2020 to avert a crippling housing shortage which could send house prices to unaffordable level.

In the US the Fed yesterday morning said US housing starts were "at a depressed level".

There is a glimpse of hope for the house construction industry as new data released today by the Australian Bureau of Statistics.

In the past 20 years, Melbourne's auction clearance rate for February has only every surpassed the 80% barrier once - this year the rate was 76%.

Higher interest rates and property prices have created a price sensitive market and finding the cheapest home loan has become "a deal maker or breaker" for many wanting to purchase property, according to Homestar Finance CEO Julian Mitton.

Matthew Quinn, CEO of Stockland Group, warned that the nation was on the verge of a housing crisis, due to Australia's love affair with larger homes and poor government planning.

Continuing a trend in Queensland's residential property market, the number of sales of units and townhouses reduced markedly during the tail end of 2009, according to the Real Estate Institute of Queensland (REIQ).

We have been warned, the current housing boom risks a lot of tears and frustration if the Reserve Bank is forced to crunch it to save the rest of the economy from overheating.

Australian home-loan approvals unexpectedly fell in January by the most in almost a decade after recent series of interest rake hike.

Reserve Bank of Australia (RBA) says, the economy needs to focus on housing to deal with population boom or it will cause the property prices and rents to rise.

In a result below market expectations Australian housing finance approvals in January were down 7.9% as higher interest rates impacted on first home buyers in particular.

The collapse of apartment approvals in January spooked many in the industry and government.

NAB head of business banking, Joseph Healy, predicts that credit growth could return to business lending in the second half of 2010 after shrinking in 2009.

While many people went on romantic dinners and getaways last weekend, investors in Canberra went on a buying spree instead, snapping up almost all the properties offered at auctions.

For the first time in many years, annual sales climbed in every market area and for both houses and units according to Residex.

Property investors looking to cash in on the current growth spurt in the sector should stick to the inner and middle ring suburbs to ensure high capital gains according to an expert.

Global sovereign debt concerns and an uneven domestic recovery could convince the RBA to delay interest rate rises for a second month despite a strong rebound in business confidence.

Greville Pabst, CEO of the WBP Property Group, has predicted that Melbourne property prices will rise by a further 10% in 2010, taking the median house price to between $550,000 - $600,000.

Research carried out by rpdata.com in its weekly Property Pulse report revealed that 191,000 first home buyers "seized the opportunity" in 2009