Australian housing affordability looking to ease despite Sydney, Perth markets
The dream of owning a place of your own looks set to become more easily realised across the country, according to a report from the Housing Industry Association (HIA).
In a joint report performed by the HIA and the Commonwealth Bank, the Housing Affordability Index has shown an improvement of 6.4 per cent in the first quarter of 2012.
While economic conditions in Sydney and Perth saw results drop slightly in those states, the rest of the country could be set to enjoy a residential property revival as factors came in line for those seeking to enter the marketplace for the first time.
Senior Economist at HIA Andrew Harvey explained that affordability was starting to improve across the nation - due at least in part to changes in mortgage conditions.
Mr Harvey asserted: "In the March quarter we observed a modest increase in earnings, a modest decline in lending rates and a softening in the median dwelling price, so all factors moved in a direction which improved housing affordability.
"Cuts to the RBA cash rate totalling 50 basis points in late 2011 should have provided a much larger boost to affordability in the quarter, but the impact was eroded as lenders widened the margin between mortgage rates and the cash rate."