The Reserve Bank’s (RBA) May rate cut should help more homebuyers into the market, according to a new report from Residex.
The latest report found the affordability position had improved over the month of May, thanks in part to the reduction of the cash rate.
Earlier this month, the RBA cut the official cash rate by 25 basis points, taking the cash rate to the historic low of 2.75 per cent.
The Residex report said house and land markets in Sydney and Melbourne, which are the most expensive markets in Australia, have moved to their most affordable level since August 2009 when the official cash rate was at three per cent.
The latest research and analysis is showing that the house and land market in Sydney, Melbourne and Canberra experienced negative growth of 1.42 per cent, 1.14 per cent and 1.12 per cent respectively in the month of April.