Bank Boss Positive for Property Future

Westpac boss Gail Kelly says she has no concerns on the health of the Australian housing market, although she sees a period ahead when prices are likely to moderate.
“We are confident on the overall health of the housing market,” Mrs Kelly told the banks annual meeting. “We are not expecting significant falls in housing prices.”
Mrs Kelly said the Australian housing market retains robust fundamentals including solid demand and strong credit quality.

The Westpac chief executive was responding to a shareholder question relating to a report released on Tuesday by global ratings agency Moody’s.
The report said current prices for Australian houses are “not sustainable,” despite recent falls, and Moody’s had put Australia’s mortgage insurance industry on negative watch.
The agency said there were “meaningful uncertainties” for Australian housing, and mortgage delinquency rates were likely to increase over the next decade.
Westpac’s mortgage delinquencies, or repayments on home loans that are more than 90 days overdue, comprised 0.51 per cent of its home loan book as of September 30, 2011.
That was four basis points lower than the level at March 31, 2011, showing delinquencies are declining, Mrs Kelly said.

Source: AAP