The home prices in Australia continue to increase on a regular basis (around 0.7 % increase per month for the 5 capital cities) and are now reaching new highs in most of the capital cities. That's quite strange, given that the borrowing capacity is not improving (interest rates are still not going down for now). Interesting explanation from Elisa Owen (Corelogic) about this : the home price increase may be explained by an increase of the average deposit ("buyers less reliant on debt").
Also worth noting that the level of mortgage arrears continue to increase, but remains quite low at this stage : 1.6 % of mortgages are now overdue (30-89 days overdue).
