Housing affordability increases in Victoria
Those looking for residential property in Melbourne will welcome news that housing affordability is increasing, making it easier for people to break into the state's real estate market as a result.
The Housing Industry Association (HIA) - Commonwealth Bank of Australia (CBA) Housing Affordability Index for Melbourne surged by 7.3 per cent in the September quarter - an 18.4 per cent jump on figures during the same period last year.
Buying conditions also improved outside of the state's capital, with housing affordability in regional areas of Victoria increasing 0.8 per cent - 12.7 per cent higher than the 2011 September quarter.
HIA Victorian executive director Gil King said the figures are evidence that the property market is turning in favour of buyers.
"Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices," Mr King explained.
"Melbourne's median dwelling price peaked in mid-2010 and the extraordinary period of growth is behind us. Since then the market has undergone a period of consolidation and prices are more-or-less unchanged over 2012 at levels around eight to nine per cent below the peak."
Mr King anticipates that low interest rates, and the potential for further cuts, will increase demand on residential real estate across the state.