Housing at most affordable level since 2002

Housing at most affordable level since 2002

30 May 2014 by Nick Bendel 0 comments

Housing is now at its most affordable level in 12 years thanks to growth in disposable incomes, according to new research.

The HIA-CBA Housing Affordability Index for the March 2014 quarter found that affordability had improved 10.8 per cent on the year before and 2.1 per cent on the previous quarter.

Housing Industry Association (HIA) senior economist Shane Garrett attributed the improvement to a combination of earnings growth, record-low interest rates and a slowing of home price increases.

“Increases in home prices over the past year have been significant,” he said.

“However, the impact of lower interest rates and continued earnings growth has ensured home purchase affordability has improved over the past year for existing homeowners and those on the cusp of entering the market in the short term.”

The booming Sydney market, which one expert recently warned was at “dangerous” levels”, became 1.3 per cent more affordable in the past 12 months.

The ACT posted a 17.8 per cent improvement in affordability levels, while Melbourne became 16.9 per cent more affordable and Adelaide became 10.9 per cent more affordable.

Brisbane improved by 10.2 per cent, Hobart by 8.3 per cent and Perth by 5 per cent.

Mr Garrett said interest rates were likely to remain low, which would help homeowner affordability to “remain reasonably favourable for the foreseeable future”.

Meanwhile, the HIA New House Affordability Index further declined in the March quarter, indicating that existing houses remain relatively more affordable than new houses.

 

 

 

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
William Phillips on how agents can expand their database and grow their business

In this episode of Secrets of the Top 100 Agents, host Tim Neary is joined again by William Phillips to discuss the real estate database and...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
upcoming events
REB Awards
Sydney The Event Centre 12 Sep
REB Awards
Sydney The Event Centre 12 Sep
Melbourne The Event Centre 14 Oct
Brisbane The Event Centre 18 Dec
View all events
Do you have an industry update?