Published on March 26th, 2009 | by john.weir0
Australia to avoid “US housing market collapse”
The Reserve Bank Australia (RBA), Australia’s largest bank, said yesterday that mortgage defaults will continue to rise as the economy slows but Australia will avoid a housing meltdown similar to the US.
Loan arrears have risen in all states over the past year, with NSW and in particularly western Sydney much higher, the central bank said.
Commonwealth Bank senior economist John Peters said loan arrears were still at very low levels compared with the US.
“That is the important thing, while things are picking up,” he said.
“The soft spot has been western Sydney, whereas other areas have been much lower.”
Mr Peters said Western Australia and Queensland were likely to experience an increase in loan arrears as the slowdown in the global economy hit their mining sectors.
For a full report, visit Channel 9 News.