Homeownership now more affordable than ever
Australians considering making the transition to homeownership may be interested by recent figures that show housing affordability continues to improve nationwide.
The Housing Industry Association(HIA)-Commonwealth Bank of Australia(CBA) Housing Affordability Index jumped 5.5 per cent in the December quarter - equating to an 18.4 per cent lift on the same period in 2011.
Shane Garrett, HIA senior economist, said the latest data means the residential real estate market is looking more attractive to homebuyers than it has in a long time - a trend that could spur more people to get a foot on the property ladder.
"This is the eighth consecutive quarter of increase in the index, bringing it close to levels not seen since the depths of the GFC (global financial crisis) during 2009," Mr Garrett explained.
"For regional areas, affordability is at levels last seen during the early 2000's decade. Affordability is on the increase in every part of the country."
Mr Garrett attributed the rise in affordability to recent cash rate reductions from the Reserve Bank of Australia, salary growth and weakening price developments.
But it could improve further, the senior economist added, if the nation's financial institutions passed on the full rate cuts to mortgage holders.