Housing Affordability On The Rise
Affordability is on the increase in every part of the country, according to the Housing Industry Association-Commonwealth Bank Housing Affordability Index.
The Index, which measures housing costs in relation to our incomes and other pressures, reported a 5.5% increase in the affordability of our homes overall during the December 2012 quarte.
That's an 18.4% improvement in affordability from the same time in 2011, and the eighth consecutive quarter of increase in the index.
HIA Senior Economist, Shane Garrett improvements were due to earnings growth, interest rate cuts and weak price developments.
"For regional areas, affordability is at levels last seen during the early 2000's decade," he said.
"Continued growth in earnings has also served to make housing more affordable. It's worth noting that affordability would be even more favourable to householders had recent RBA ratecuts been passed on fully be lenders."
The report recorded improved affordability in all seven capital cities, with Sydney still ranking the least affordable overall.>