RBA rings alarm on high debt levels
Risks to financial stability could be building as house prices and debt levels keep rising, the Reserve Bank has caution...
Gross spending on housing finance has increased by 17.1 per cent, according to the PRDnationwide Research Quarterly Economic Property Report.
The report, which shows data on core economic, demographic and property indicators, revealed the gross spend on housing finance during May 2013 was $23.4 billion.
Investor spending reached $8.4 billion compared to the previous year – an increase of $1.9 billion.
Meanwhile, the report showed consumer sentiment had increased by 6.9 per cent over the past year, based on data from the Australian Consumer Sentiment Index.
Optimism rose from a low of 97.6 points in May, to become more prevalent in June at 104.0 points. May’s low score was the first time in six months that pessimists outweighed optimists, according to the report.
Despite the lowest index score of 96.2 points, consumer sentiment increased the most in Queensland – up 12.8 per cent.
This was followed by Victoria at 9.2 per cent, while New South Wales was the only state to experience a decline in sentiment, falling by 1.4 per cent.
Optimism is highest in Western Australia, with a score of 112.1 points.