Positive news for Australians looking to buy a home
Australians considering buying a home may be encouraged by a recent report from the Housing Industry Association (HIA).
Four straight quarters of improvement in housing affordability have been recorded for the nation, with a 2.2 per cent raise in the HIA-Commonwealth Bank Housing Affordability Index for December 2011, equalling a total increase of 8.3 per cent in affordability for the year.
This may come as good news to first time buyers, as the initial entry into the residential property market can be daunting - especially if prices seem out of reach.
Fortunately for them, conditions seem to favour buyers at the moment.
HIA's senior economist Andrew Harvey expressed confidence in the industry, explaining that earnings growth and falling mortgage lending rates "more than offset a modest increase in the median dwelling price" to have a positive effect on the December quarter.
He said: "When the recent improvements in affordability are considered alongside the easier access to skilled trades as home building activity has eased, it increasingly looks like a good time to buy a new home for those financially able to do so."
