The latest Australian Institute for Progress Housing Affordability Index shows housing affordability improved slightly in the September Quarter, 2021. This was as a result of price falls in Melbourne, while they stayed almost stationary in Sydney.
House prices are likely at a peak, with or without interest rate rises, as they nudge levels of unaffordability last seen just before the Global Financial Crisis.
Australia's two major cities, Sydney and Melbourne, are close to historical peaks of unaffordability, but Perth, Darwin and Brisbane are still reasonable to moderate.
Repayment affordability in cities like Brisbane, Perth and Darwin are in a band from slightly better than the average index level for the 90s to at most 12.5% worse.
The Olympic business model means that host cities invariably lose out. Brisbane will need a heroic effort to avoid that fate.
If the first sign of madness is doing the same thing and expecting a different result, how are we to describe the state of mind that does the same failed policy twice as hard and expects an even better result?
Other state governments should not copy this misguided tax, which will stymie development and push up house prices.
The latest AIP Housing Affordability Index shows that while house prices have risen there is scope for them to rise much further before they become unaffordable, judged on an historical basis of what purchasers are prepared to pay.
We've renewed our call for first home buyers to be able to borrow from their superannuation account towards their deposit based on a new study: "Superannuation and Housing: growing the cake and eating it too".