Less Debt but Consumer Confidence in Real Estate Continues
Australians are being mindful about how they use credit. In fact, they are cutting the plastic and shunning personal loans. Only real estate loans seem like a priority for majority of the consumers. Loans for housing purchase and renovations continue to be taken out in record numbers.
According to the Bureau of Statistics, the value of personal loans fell by 2.9 percent in May to just over $6 billion – the lowest level since November 2005.
Credit card purchases are down by 4.8 percent for the month, putting the average outstanding credit at just over $3000.
Home loans, however, are on the rise. It has increased by 3 percent to just over 17 billion in the same month. Following big cuts in interest rates, this trend has been consistent since October. Interest rates for housing loans are at a 49-year low.
Also bolstering the market is the substantial increased in first-time home buyers.