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.
Can you afford to buy in this suburb? Find out how much you can borrow
Top Suburbs :
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.
We value your privacy and treat all your information seriously - you can check out