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.
Tagged: housing affordability
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.
Our brand new housing affordability index reveals that even though the latest available ABS figures (December 2018) show a drop of 2.4% in average house prices in the last quarter of last year, houses were actually 1.2% less affordable at the same time
Labor's two-pronged housing affordability package has them rowing the same boat in both directions, expending a lot of taxpayer dollars and going nowhere.
Labor's problem is this. If abolishing negative gearing is to improve housing affordability it has to decrease prices. But if it decreases prices it decreases the savings of all home owners.
Chris Bowen claims Australian property "concessions" are the highest in the world, getting it wrong twice in the same sentence.
This analysis shows the major issue with housing affordability is the time it takes to save a deposit, not negative gearing, and that mortgage repayments themselves are quite affordable by the standards of the last 23 years.