The head of the Reserve Bank of Australia says house prices aren't rising too fast but has warned buyers not to over-extend themselves when taking out a home loan.

RBA governor Glenn Stevens says the recent surge in house prices is reversing an earlier weaknesses.  “My own view, thus far, has been that some rise in housing prices is part of the normal cyclical dynamic,” he told a Citi Group Investment Conference in Sydney on Tuesday. “Moreover, credit growth,…