A “record” variety of Aussies are stashing their money in safer spots as they shrink back from the property as rate of interest rises take their toll.
New information from the Australian Bureau of Statistics has revealed households put $50.8bn into time period deposits over the September quarter – the strongest progress since December 2008.
By comparability, funding in shares and different fairness rose by $12bn.
Overall, family wealth fell by $279bn over the identical interval after a 30-year file fall of $484bn within the June quarter.
The bureau stated the altering monetary place of on a regular basis Australians mirrored the monetary market volatility – attributable to rising rates of interest and share market circumstances.
ABS head of finance and wealth statistics Katherine Keenan stated the autumn in general wealth was “almost entirely” the results of a cooling housing market.
“This fall in household wealth was almost entirely driven by the decrease in the value of residential land and dwellings, which recorded its largest decline since December 2008,” she stated.
Ms Keenan stated the softer fall in family wealth, in contrast with the earlier quarter, was, partly, as a result of a “record” improve in Australians inserting their cash into time period deposits.
Between June and September the cooling property market lower 2.2 per cent or $319bn from family wealth.
The median Australian home is now value round $545,000, a fall from the file excessive of $574,807 reached within the first three months of the 12 months.
Australians have more and more turned away from property this 12 months, with the ABS attributing a 50 per cent discount in demand for credit score to a “weakening appetite” for housing loans.
The worth of latest house loans fell 17.1 per cent over the previous 12 months, in keeping with Rate City.
Rate City analysis director Sally Tindall stated rate of interest rises launched by the Reserve Bank to curb inflation had “spooked” debtors.
Originally printed as ‘Record’ degree of money in time period deposits as Aussies shun housing market
