Australian property increases in affordability during the June quarter

By the resi financial blog team, 05 September 2013

Housing affordability in Australia

Housing affordability has increased across Australia over the June quarter of 2013, which could be fantastic news for any first home buyer interested in taking the plunge and entering the market.

According to the latest Housing Affordability Index released by the Housing Industry Association (HIA) and the Commonwealth Bank, affordability has increased nationwide by 4.4 per cent.

The increase has been experienced simultaneously across all capital cities and non-metropolitan areas, with the affordability of property settling at a huge 16.7 per cent higher than the same time in 2012, according to the HIA's chief economist Harley Dale.

Among the capital cities, Brisbane experienced the largest growth in affordability across the quarter, increasing by 10.4 per cent overall. Following this, there were affordability increases in Hobart (10.0 per cent), Adelaide (7.7 per cent), Canberra and Perth (4.1 per cent), Sydney (3.3 per cent) and Melbourne (2.2 per cent).

"These are certainly encouraging results for those entering the market at this time in the cycle," said Mr Dale in an August 28 statement.

The regional areas of the country also experienced growth across the quarter. For example, regional Queensland went through a housing affordability increase of 9.6 per cent.

Furthermore, houses in Tasmania (8.1 per cent), South Australia (7.7 per cent), Victoria (5.3 per cent), Western Australia (4.5 per cent) and New South Wales (2.9 per cent) all grew in affordability across the quarter.

Mr Dale said that the reduction in interest rates following the Reserve Bank of Australia's decision earlier this month to reduce the official cash rate to a historically low 2.5 per cent was one of the main contributing factors to these changes in the real estate market.

Regardless of whether you're seeking your first home loan, or another one for an investment property, these changes could indicate a fantastic time to take advantage of the market and secure a fantastic deal for you and your family.

Categories: Home Loans, Property Investment