Housing affordability improves across the board
Buying a house is a large financial commitment that will ultimately be decided by your financial situation.
With this in mind, Australians looking to break into the residential property market are likely to welcome recent data that shows housing affordability continues to improve across the nation.
The Housing Industry Association (HIA)-Commonwealth Bank of Australia (CBA) Housing Affordability Index jumped by 5.3 per cent in the September quarter - making it 15 per cent higher than during the same period last year.
"This is the seventh consecutive quarter where we have seen an improvement in the headline affordability index," HIA chief economist Harley Dale said yesterday (November 27).
"The run of consecutive improvements in some regional indices is even longer, in some instances showing affordability has reached levels not seen since the early 2000s."
Mr Dale attributed low interest rates, easing property prices and steadily growing incomes to the increase of housing affordability, however the expert was reluctant to say whether a real estate recovery was in sight.
"An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity," he added.