The figures unleashed recently has shown that the number of Australians opting for home loans have marked a steep fall, touching a nine-year low. The plunge is a clear reflection of the emerging weakness insinuating in the country's housing sector.

The Australian Bureau of Statistics has posted that the total loans accounting owner-occupied homes have registered a slip of 3.9 in June, taking the total number of loans for June to 46,420, compared to a revised 3% rise recorded in May.

However, the analysts had speculated to witness a seasonally adjusted 2% plunge in the month. Estimates ranged from a slip of 3.0% to a climb of 2.4%.

In addition, the home loans values for owner-occupied properties have slipped 1% touching $13.39 billion, while, the home loan value for investment housing finance marked a plunge 3.6% touching $7.32 billion.

Besides, the main driver of the housing sector--auction clearance rates, have contracted since the year's beginning, while building approvals, which reflects the future scenario of the housing sector, dropped 3.3% in June, marking the third consecutive monthly fall.

"Weakening demand for home loans is beginning to flow through to house prices which are now moderating at high levels", outlined, Matthew Circosta from Moody's Analytics.