Sunday, July 8

Record housing debt to housing assets ratio

Just noticed that the RBA has updated its table B21 ... And the gold medal goes to the ratio of housing debt to housing assets ... At 30.9 per cent, Austrlia's housing debt ratio in Q1 2012 is higher than its post GFC high (at 30.6 per cent in Q1 2009).

As debt to disposable income remained pretty much unchanged (see below), it looks like the change in the above chart was driven largely by deflation on the assets side.

While financial assets have grown against disposable income ...

It looks like house-price deflation has seen total assets decline against disposable income.

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