From the RBA: Glenn Stevens:
But it would be a different matter if there were to be a further run-up in prices combined with overconfident expectations of continuing gains and significant increases in household debt. Growth in the amount of debt owed by households is currently running at six to seven per cent per annum, only slightly above the growth rate of national income, he said.
It's hard to mount the soap box to complain about that pace. Still he warned investors to take care in the Sydney market, where most of the big rises in borrowing had been seen.
He warned banks to maintain strong lending standards.
And he warned that in making their financing and investment decisions, people should not assume that prices always rise.'"They don't; sometimes they fall" he said.