First home buyer affordability improved by three per cent in the three months to September, as easing in house prices offset a net increase in borrowing costs.
According to the HIA-Commonwealth Bank First Home Buyer Affordability Index the average first home buyer mortgage repayments fell by 1.5 per cent in the quarter to $2,785 per month.
The index still remains 1.1 per cent lower than the September quarter 2007 and 9.9 per cent lower than the same quarter in 2006 however HIA is cautiously optimistic that affordability will continue to improve.
HIA’s chief executive Chris Lamont said “aggressive interest rate cuts and the additions to the first home owners grant, particularly for new housing, provide some welcome relief”.
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