Affordability suffers, but housing sees signs of life

By |

New dwelling numbers are up, but migration has dropped off and affordability is faltering, a new report indicates.

The PRDNationwide Quarterly Economic and Property Report has shown a 2.2% increase in dwelling starts for the quarter. However, dwelling starts remain 17.5% down compared to last year. PRDNationwide research director Aaron Maskrey said business confidence also took a hit over the quarter.

 "Although Australia has proved to be insulated and economically robust from the troubles overseas, there is no doubt that the volatility has affected sentiment and confidence over the year," Maskrey commented.

In spite of faltering confidence, housing finance was up 3.5% on last year. Affordability, meanwhile, has continued to decline.

"On average, Australian households now need approximately 34.6% of the family income to service their home loan," Maskrey said.

Maskrey said house prices had nevertheless softened over the year, but predicted that prices could begin to see recovery in late 2012.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : sunshine , the basin , wentworthville , windale , alderley

go back

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here