Improvement in home affordability Down Under
Members of the populace hoping to take the first step on the Australian property ladder will be pleased to hear that housing affordability continues to improve throughout the country according to first quarter results.
Indexed data supplied by the Housing Industry Association revealed an increase of almost 6.5 per cent by the end of the first quarter when compared to the same time in 2011.
Economists had hoped that the recent reduction in the RBA cash rate would provide a greater boost to affordability but lenders have widened the margin between Australian mortgage rates and the cash rate, but most believe that conditions will improve in the months ahead.
The report confirms that affordability improved in all states excluding Victoria which remained unchanged. Most capital cities saw improving affordability apart from Perth and Sydney.