Housing Affordability Continues to Improve

Posted on March 28th, 2013 · Posted in News

There was a rise in housing affordability across the nation during the three months to December 2012, the latest HIA-CBA Housing Affordability Index reveals.

Data shows that the index increased 5.5% during the quarter, marking a rise of 18.4% compared to the same period of the previous year. Senior economist at the Housing Industry Association Shane Garrett emphasised that this is the eighth month in a row that the index has improved – and it is now close to levels seen before the global financial crisis.  “For regional areas, affordability is at levels last seen during the early 2000’s. Affordability is on the increase in every part of the country,” he noted.

Weakness in price developments and two cash rate reductions have had a positive impact on the Australian property market, especially during the final quarter of last year.  Despite growing pressure from the property sector, among others, the Reserve Bank of Australia board voted to keep the official cash rate at 3% when it met on March 5.  Governor Glenn Stevens said global and domestic economic conditions had started to stabilise, which at this moment in time did not warrant a further rate cut.

This is great news for First Home Buyers or those of us looking to upgrade, downgrade or move. If you are currently considering your options with regards to purchasing a property, speak with us first and we will help you to decide. After all we are here to provide you with guidance and advice to Strengthen Your Financial Future.