Property

Housing gets more affordable

Google Maps

ANOTHER rise in the HIA-Commonwealth Bank Housing Affordability Index in the March 2012 quarter marks the fifth straight quarter of improvement.

Conditions are beginning to tilt back in favour of those trying to enter the housing market says the Housing Industry Association.

The Affordability Index improved by 6.4 per cent (3.7 points) in the March 2012 quarter to be 11.0 per cent (6.1 points) higher over the year.

"In the March quarter we observed a modest increase in earnings, a modest decline in lending rates and a softening in the median dwelling price, so all factors moved in a direction which improved housing affordability," said HIA's Senior Economist, Andrew Harvey.

"Cuts to the RBA cash rate totalling 50 basis points in late 2011 should have provided a much larger boost to affordability in the quarter but the impact was eroded as lenders widened the margin between mortgage rates and the cash rate.

"After accounting for the wider margins, the average mortgage rate during the March quarter was only 13 basis points lower than in the December quarter.

"Those trying to get a foothold into the housing market will welcome the recent improvement in affordability, and we should see further improvement in coming quarters as the May rate cut flows through.

"However, we should be mindful that much of the recent improvement in affordability is driven by a cyclical softening in the economy and in house prices. Structural issues which dramatically push up the cost of housing, including high taxes, still need to be addressed and reformed," added Mr Harvey.

Sydney and Perth both recorded deteriorating affordability in the March quarter of 2012 with their indices falling by 1.0 per cent and 1.8 per cent respectively.

Affordability improved in the remainder of Australia's capital cities with Melbourne up by 7.3 per cent, Brisbane up by 6.3 per cent, Adelaide up by 7.3 per cent, Hobart up by 3.0 per cent and Canberra up by 7.1 per cent.

Outside of the capital cities, affordability improved in all states with the exception of Victoria which was unchanged. Affordability in non-metropolitan New South Wales was up by 2.4 per cent, Queensland was up by 4.5 per cent, South Australia was up by 6.4 per cent, Western Australia was up by 8.7 per cent and Tasmania was up by 0.4 per cent.

Topics:  hia, home ownership, housing, property


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

DA rejection wins council praise from residents

LOCAL ANGER: Protesters at last year’s rally against development out on Ewingsdale Road Byron Bay.

EWINGSDALE residents have welcomed Byron Shire Council decision

Only-child study seeking subjects for HSC work

ONLY CHILD: Mullumbimby High School student Kaitlyn McMurtry.

Share joys and challenges fo being only child

Get a move on: Entries still open for Byron’s triathlon

Alstonville triathlete Clayton Fettell after winning the Byron Bay Triathlon in 2014.

Entries are still being taken for Byron Bay Triathlon.

Latest deals and offers

Thirsty Merc shifting gears as they are back to tour grind

THIRSTY Merc are back, touring their latest album Shifting Gears.

DA rejection wins council praise from residents

LOCAL ANGER: Protesters at last year’s rally against development out on Ewingsdale Road Byron Bay.

EWINGSDALE residents have welcomed Byron Shire Council decision

Only-child study seeking subjects for HSC work

ONLY CHILD: Mullumbimby High School student Kaitlyn McMurtry.

Share joys and challenges fo being only child

Get a move on: Entries still open for Byron’s triathlon

Alstonville triathlete Clayton Fettell after winning the Byron Bay Triathlon in 2014.

Entries are still being taken for Byron Bay Triathlon.

Hurry! Reserved seating selling fast for Pro Bull Riding

Luke Nichols riding Rap Dancer at the PBR Bullriding Rural Weekly Live Series held at the Grafton Showgrounds. Photo:Bruce Thomas / Daily Examiner March 28, 2015

Numbered seats still available for PBR Live Series finale

EDITORIAL: Homelessness- the conversation we have to have

STREET WISE: Robina Todd is typical of many sleeping on the streets around Byron Bay.

Homelessness in Byron Bay- the conversation we have to have.

PBR Fraser Coast highlights

Professional Bull Riders / PBR , Hervey Bay Seafront Oval - Troy Wilkinson on Unearthed. Photo: Valerie Horton / Fraser Coast Chronicle

Highlights from Rural Weekly PBR Live Series round at Hervey Bay, Queensland on...

Blake Lively Film Shot on Gold Coast

Blake Lively in The Shallows.

New trailer for shark thriller The Shallows starring Blake Lively.

Dash Cam of Head-on Crash

Head-on crash after overtaking in fog.

Disaster as driver overtakes in fog at night.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

VIDEO: Art Deco fan pays $835,000 for Imperial Hotel

No Caption

Iconic "Impy" sold at a bargan price to bidder who loves Art Deco.

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances