Reports show that the net worth of Australian property is on the rise.
According to the Financial Stability Review from the Reserve Bank of Australia (RBA), the recovery in the housing market and other assets has contributed to the higher net worth.
However, RBA did note that credit growth in the property market has slowed slightly as people are looking to repay their existing debts before taking out more loans.
Indeed, the Australian Bureau of Statistics (ABS) previously reported that the number of home loans taken out had fallen recently but that the value of financial commitments on housing had risen.
This suggests that consumers are willing to pay more for their housing, which ties in with reports of higher consumer confidence and higher property prices.
In spite of more expensive mortgages, RBA says that financial stress in households remains low. RP Data reported that the ongoing rise in property prices has continued throughout the first quarter of 2013.
Posted by Steve Douglas