September 02, 2013
Data released by the Housing Industry Association (HIA) shows that housing affordability continued to rise in the June quarter.
The HIA-Commonwealth Bank Housing Affordability Index increased by 4.4 per cent to 72.8, with housing affordability now 16.7 per cent higher than in mid-2012.
Affordability increased in all seven capital cities, with Brisbane recording the strongest increase of 10.4 per cent. Next was Hobart (10.0 per cent), followed by Adelaide (7.7 per cent), Canberra and Perth (4.1 per cent), Sydney (3.3 per cent), and Melbourne (2.2 per cent).
"The reduction in interest rates is more than offsetting recent dwelling price increases," said HIA Chief Economist, Harley Dale.
“Current improvements in housing affordability do not represent structural shifts in Australia’s affordability; rather, they represent the dominant impact of cyclical changes in lending rates which will of course be prone to reversal at some point.”
Outside of the capital cities, affordability also improved in all six states. The strongest increase was for regional Queensland (9.6 per cent), followed by Tasmania (8.1 per cent), South Australia (7.7 per cent), Victoria (5.3 per cent), Western Australia (4.5 per cent), and New South Wales (2.9 per cent).
The HIA also noted a relatively new house affordability advantage emerging for Sydney and Western Australia where a clear new home building recovery is underway.