Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Affordability beginning to recover, new data shows

houseandmoneyrates houseandmoneyrates
Tim Neary 4 minute read

The HIA Affordability Index has shown a rising improvement in housing affordability in Australia, with its index rising by 1.5 per cent higher in the quarter and 2.2 per cent year-on-year.

“A trend of improving affordability is taking root in the major capital cities, due largely to falling housing prices,” commented HIA acting principal economist Geordan Murray, adding that affordability in Sydney posted the biggest improvement.

“While it remains the least affordable market in the country by quite a margin, the index is 9.0 per cent higher than a year earlier which is a significant positive step.

“The improvement in affordability has primarily been driven by the declining trend in home prices over the last year.”

Advertisement
Advertisement

He said that the analysis also shows improved affordability in Melbourne, albeit to a lesser degree than in Sydney.

“The downturn in home prices is yet to run its full course. As the price cycle progresses, affordability will continue to improve and this could be bolstered by wages growth.

“Affordability has been deteriorating over a number of decades and it will take many decades of concerned effort by governments at all levels to reduce the constraints and punitive taxes on housing that have led to the creation of the affordability challenge.”

Meanwhile, new REIWA data shows that affordability in Perth’s residential sales market improved during the September 2018 quarter, with house and unit prices softening marginally.

REIWA president Damian Collins said earlier that there was an “excellent opportunity” for buyers and investors to take advantage of current market conditions.

PROMOTED CONTENT


“While the worst of the market downturn appears to be behind us, the results of the September 2018 quarter reveal conditions are favourable for buyers and investors,” Mr Collins said.

Mr Collins said that reiwa.com data shows Perth’s median house price should settle at $505,000 for the September 2018 quarter.

“This is 1.9 per cent lower than the June 2018 quarter median and 1 per cent lower than last year’s September quarter.

“While quarterly median figures can be more subject to stock composition changes, the fact that the annual change is only 1 per cent lower suggests that we are at or near the bottom.

“It was a similar story for the unit market, with the median expected to settle at $395,000, which is 1.3 per cent lower than the June 2018 quarter and 2.5 per cent lower than the September 2017 quarter.”

[Related: Investor regulatory interventions causing apartment downturn: HIA]

Affordability beginning to recover, new data shows
houseandmoneyrates
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

houseandmoneyrates

 

more from the adviser
SME small business

Breaking News

Mortgage brokers writing commercial loans hit high

The number of mortgage brokers branching into commercial loans ha...

tech tools

Breaking News

Asset finance neo-lender launches to broker channel

A new fintech backed by Resimac has launched, aiming to overcome ...

handshake news

Breaking News

ASX-listed lender joins FAST panel

A personal lender has become the latest addition to the aggregato...