In news that would make would-be home buyers happy, there has been a steady increase in housing affordability in all states around Australia.
The Housing Industry Association/Commonwealth Bank housing affordability index has shown a rise of 5.3 per cent in the September quarter, for a reading of 65.8.
The index shows properties have become more affordable in all regions, with Hobart the most affordable city in Australia, at 78.3, Adelaide at 71.1 and Brisbane 68.5.
Melbourne scored 63.6 and Perth at 64.1.
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Sydney was the least affordable among all cities, with an index of 54.2 despite its housing being at its most affordable levels since the global financial crisis.
Sydney's housing affordability index has risen by 13 per cent since the 2011 March quarter.
The improvement in the relative cost of buying a home has been the result of combination of interest rates decreases, stable property prices and rising wages, according to the quarterly Housing Industry Association-Commonwealth Bank housing affordability index.
As a result, the average monthly loan repayment for Sydney has dropped by $422 to $3453 in the period.
The Housing Industry Association's chief economist, Dr Harley Dale, told The Sydney Morning Herald housing in Sydney was now more affordable than at any time since the 2002 June quarter.
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"It gives another tick in the box that gives us optimism that we'll finally see a housing recovery in 2013," Dr Dale said.
"We can have some confidence that moderate price growth will return to the market over the next couple of years, but I don't think we need to fear another price boom lurking around the corner."
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Australia's cheapest suburb. Photo: REA Images
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11 Comments
Oh F~F~S get off your bums & study some tertiary course so you can increase your income.
ReplyWhy do you have to live in a "city"?
Replyhow much did Real Estate Agent pay to Advertise on Yahoo, what a f...n joke. The reason cheap , is maybe theres no frickin jobs and its dam cold .Why not let us know about suburbs in the big cities that are cheap, maybe they are kept secret so fat cat investors can buy them then charge the poor huge rents ...
2 RepliesSeems to me these are VERY rubbery figures and assumptions that all this is based on. It's obviously a ploy by the real estate industry, with the blessing from this FERAL labor government, trying to fool people into thinking they can afford housing the 'average' Australian worker obviously cannot ! Exactly the same idea the car industry came up with to 'persuade' people they can and should buy a new car now - while things are going so well ! All this while Australia suffers record company closures, mass staff lay-offs, and unemployment figures.
ReplyI think even for investors the sums dont look good to buy in 2013-4. Buy in and holding costs are still high so even though you could get good rent you would still need decent capital gain which is not likely for another couple of years. Particularly for one of these overpriced new units being thrown up around the place. After costs/rent you would need some 5% capital gain per year just to break even after about 4 years. If you didn't get that then you are losing money on your investment. Yes I know real estate is a long term investment and if you hang onto it for 8+ years you are likely to make a profit but shares and super and bank deposits are also an investment with less stress and bother.
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