Prosperity up, mortgage stress down according to CommSec

According to a new report published by CommSec, Australians are more prosperous than ever and home loan affordability is at levels not seen since 2005.

The National Performance Gauge is a measure of the purchasing power of Australian workers. It showed that it now took a worker 1.58 weeks of average income to make the monthly repayment on an average mortgage. This was similar to levels of five years ago, according to AAP.

“While the standard of living of ordinary Australians has lifted over time, those who have done best have been those holding assets such as shares and houses,” said Craig James, chief economist with CommSec.

James noted that average property prices had risen 13.6% in 2009, 40% over the past five years and 138% over the decade, as reported by The Age.

However, rising interest rates in 2010 were likely to put a temporary dampener on economic prosperity this year.