Fitch eases its concerns that Australia had a large housing bubble
The moderation in Australian house prices since mid-2010 should ease concerns that a large housing price bubble had developed, according to the international ratings agency Fitch.
It noted household leverage was still high in Australia.
“The household debt-to-disposable income ratio was 153.5% in Q2 2011, above the 'AAA' median, albeit lower than some rating peers.
“This can be linked to the run-up in housing prices over the past decade and a half.
“Official and private sector estimates show that growth in housing prices have been moderating since mid-2010, which should ease concerns that a large bubble has developed,” the report notes.
Jonathan Chancellor
Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.
