Australians abandon buying first home as loan costs outweigh property price drops

Reserve Bank is expected to again lift the cash rate, extending the most rapid spate of rises since 1994

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First-home buyers are disappearing from the market with property price falls not enough to offset the rising cost of servicing loans, according to new data.

Data from the Australian Bureau of Statistics has shown demand for home loans contracting quickly with the Reserve Bank expected to lift its cash rate again on Tuesday, extending the most rapid spate of rate rises since 1994.

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