House prices could fall by somewhere between 18 and 32 percent by June 2023 according to modelling using the AIP’s Housing Affordability Repayments model.
Tagged: housing affordability
Despite interest rate rises, house prices have retained most of their value, which has led to a decrease in housing affordability across Australia.
The Queensland Housing Summit was an admission of failure and did nothing to address the real problems in housing affordability in Queensland.
Housing repayments were more affordable in the first quarter this year than the last quarter in 2021, but interest rate hikes since then will reverse this.
Housing affordability continued to decline in the December quarter last year. This is mainly due to a strong increase in property prices in most cities, although it was only moderate in Australia's largest market, Sydney.
Detailed analysis of the ALP’s shared equity home buyer scheme shows that it is poorly designed, expensive and discriminatory, makes no difference to housing affordability and the cost has already almost doubled.
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.
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.