Calls for more affordable housing
With RP Data figures showing that home prices have increased year-on-year for all capital cities, there is ongoing concern about the reality of buying a property for many Australians.
The five-capital city aggregate increase in home values indicates that property currently costs 9.4 per cent more than it did at this time last year.
This has been driven by particularly strong gains in Sydney and Melbourne, where the market is thriving.
The Reserve Bank of Australia (RBA) has kept the cash rate at 2.5 per cent for over a year now, which makes buying a property a more attractive prospect for anyone worried about home loan interest rates.
How homes can be more affordable
However, a financial analyst from the business school at the University of Sydney has suggested that more work is needed to keep homes affordable for people to buy into the market.
Associate Professor Dr Jamie Alcock noted that the Reserve Bank can keep banks from being too liberal with credit offerings, but has limited influence with regard to house prices in the Lucky Country.
"The RBA is right to draw attention to the issue of housing affordability and the very serious knock-on effects of market mispricing," Dr Alcock said in a September 25 statement.
"But governments can have a far greater impact on housing affordability by eliminating stamp duties, increasing infrastructure coverage, relaxing many planning regulations and tightening up trade-union legislation."'
"Until governments gets serious with these issues, housing affordability will remain high and there is little that any commercial bank can do about it," he added.
Some red tape is already on the cutting room floor
If calls such as these are heeded, it could make it much simpler for people to become property owners, or to expand their investment portfolio in the burgeoning market.
Some local and state governments have already made moves to facilitate property purchases. The City of Gold Coast has scrapped infrastructure fees for granny flats, allowing families to live closer together much more readily.
And in Victoria, the state government last month raised the concession on stamp duty for first home buyers to 50 per cent, which is expected to lead to $197 million in total savings for these people making moves into property for the first time.
With examples such as this already in place, there could be further reductions in red tape that allow people to buy sooner.