Rising household debt, combined with ballooning house prices are likely to lead to a credit crunch, Bancorp economist Stuart Marshall says.
Monday, September 2nd 2002, 2:40PM
by The Landlord
He notes that wages are growing at a much slower rate of about 3.5%. However, the median house price rose a greater 8.8% between July and July last year.
"If house prices keep going up at a faster rate than debt and repayment levels and as long as the economy is growing to the point that people can afford to enter the housing market, then there’s no problem," Marshall says.
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