Buying a property more affordable in first quarter
People looking at buying a property will be pleased to hear that housing affordability has risen across the country in the first three months of 2013 by 1.2 per cent, according to the Housing Industry Association (HIA).
The association pegs the improvement on an easing of mortgage lending rates, as well as subdued house prices.
Compared to twelve months ago, the affordability index has grown by 12.8 per cent to 69.7.
"The improvements to affordability in this update, however, were not universal," said HIA senior economist Shane Garrett.
Affordability of residential properties was down in Adelaide by 4.1 per cent, Hobart by 3.8 per cent and Perth by 2.6 per cent during the quarter.
Brisbane, Melbourne, Canberra and Sydney showed increases in affordability between 1.2 and 6.2 per cent.
The lower cash rate of 2.75 per cent from the Reserve Bank of Australia (RBA) has been contributing to the housing affordability crisis and "we can expect further improvements over coming quarters as the latest RBA rate cut flows through to households," noted Mr Garrett.