Zoom into Australia’s housing market and the Aussie 29/7/2014
The rising house prices are under the scope of lawmakers in the majority of G10 countries. The troubling expansion of mortgage markets is mostly due to low-rate policies and lead to significantly high house prices. We cite the UK, New Zealand, Norway, Denmark, Sweden and Switzerland amongst the most concerned by the fattening real estate prices. The governments of above-stated countries have been putting in place the so-called macro prudential measures in order to cool down the housing markets.
Australia is experiencing a similar issue with its household debt reaching a 25-year high reports Bloomberg News, the average mortgage is said to be equivalent to 4 folds of the household income in 80% of cases. However, we know that the Australian government is comfortable and even supportive of growing housing prices in order to transfer jobs from mining to construction sector.