Housing at its most affordable
Despite price growth, housing affordability was at its best point in more than a decade during the March quarter due to record low interest rates.
The HIA-CBA Housing Affordability Index improved 2.1 per cent in the March quarter. Over the 12 month period, the index improved 10.8%.
The index measures:
• Weekly household incomes
• The costs of home ownership – house prices and monthly mortgage repayments
The index assumes buyers are providing a 10 per cent deposit and financing the remaining 90 per cent of the purchase price with a 25 year variable rate mortgage.
“Increases in home prices over the past year have been significant,” said HIA economist Shane Garrett.
“However, the impact of lower interest rates and continued earnings growth has ensured that home purchase affordability has improved over the past year for existing homeowners and those on the cusp of entering the market in the short term,” said Mr Garrett.
If you’re looking to purchase a home or investment property today, contact your local LJ Hooker office or visit ljhooker.com.au