Australia’s Housing Industry Association (HIA) reports that housing affordability is improving across the entire country. HIA officials say they haven’t seen homes so affordable since the early 2000s and the improvement is attributed to better incomes and falling interest rates. The HIA-CBA Housing Affordability Index jumped 5.3% for the month of September, which marked a 15% increase in affordability compared to the same period last year. Experts believe yet another rate cut could spur a recovery in transaction volume, which would give a much-needed boost to construction activity throughout Australia. For more on this continue reading the following article from Property Wire.
Housing affordability in Australia continued in the September 2012 quarter with improvements evident across all geographical areas, according to the latest index from the Housing Industry Association, the voice of Australia’s residential building industry.
The HIA-CBA Housing Affordability Index increased by 5.3% in the September 2012 quarter to be up by 15% compared to the same quarter in 2011, the seventh consecutive quarterly improvement.
‘The run of consecutive improvements in some regional indices is even longer, in some instances showing affordability has reached levels not seen since the early 2000s,’ said HIA chief economist Harley Dale.
‘Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices. At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households’ willingness to engage in the residential property market,’ he explained.
He is hopeful that tentative signs of a recovery in transactions volumes should hopefully gather legs. ‘Another interest rate cut in early December would enhance the prospects of this occurring. An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity,’ said Dale
The HIA-CBA Housing Affordability Report recorded improved affordability in all seven capital city indices as well as improvements in the six indices tracking the non-metro regions of each state. Northern Territory is not included in the analysis.
This article was republished with permission from Property Wire.