Housing affordability continues to improve according to the Housing Industry Association
The Housing Industry Association (HIA) has announced that housing affordability continued to grow in the September 2012 quarter with improvements evident across all monitored geographical areas.
The HIA-CBA Housing Affordability Index increased by 5.3 per cent in the September 2012 quarter to be up by 15.0 per cent compared to the same quarter in 2011.
"This is the seventh consecutive quarter where we have seen an improvement in the headline affordability index," HIA Chief Economist, Dr Harley Dale said. "The run of consecutive improvements in some regional indices is even longer, in some instances showing affordability has reached levels not seen since the early 2000s."
"Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices," he said. "At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households' willingness to engage in the residential property market."
The HIA-CBA Housing Affordability Report recorded improved affordability in all seven capital city indices as well as improvements in the six indices tracking the non-metro regions of each state. (Note: Northern Territory is not included in the analysis).