It may not feel like it, considering the high property prices in some of Australia’s cities, but housing is becoming more affordable on the back of interest rate cuts, a growth in earnings and weak price developments.
The Housing Industry Association (HIA) claims that its HIA-CBA Housing Affordability Index increased 5.5% over the December quarter, representing an 18.4% advance on the same period of 2011.
HIA senior economist Shane Garrett said the figures represent the eighth consecutive quarter of increase, bringing affordability close to levels not seen since the height of the GFC in 2009.
“For regional areas, affordability is at levels last seen during the early 2000’s... Affordability is on the increase in every part of the country. This has been driven by the weakness of price developments as well as the two cash rate reductions effected by the RBA in the final quarter.”
He said continued growth in earnings also contributed to the increase, but noted that “affordability would be even more favourable to householders had recent RBA rate cuts been passed on fully by lenders.”
The HIA-CBA Housing Affordability Report recorded improved affordability in all seven capital city indices as well as improvements in the six indices tracking the non-metro regions of each state (Northern Territory is not included in the analysis).
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 :
east victoria park
Get help with your investment property
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 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 an appointment is free.
We value your privacy and treat all your information seriously - you can check out