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.
Tagged: housing affordability
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.
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".
Housing became more affordable in the first quarter of this year everywhere, apart from Hobart and on average homes are more affordable across Australia now than at any time in the last 17 years.
Modelling by the Australian Institute for Progress shows that homeowning Australians have a financial buffer in the equity in their house that they can safely use to tide over the short-term interruption caused by COVID-19.
House repayments across Australia were at their lowest level for 16 years in the second quarter of this year, according to the latest ABS figures, but the average first home buyer is waiting an additional 15.12 weeks to save a deposit.