HIA says affordability is still an issue

A modest decline in property prices has helped improve housing affordability over the last quarter according to the Housing Industry Association.

The HIA-Commonwealth Bank Housing Affordability Index rose by 3.6 per cent in the September. But despite the modest improvement, HIA chief economist Harley Dale said affordability issues were still crippling borrowers across the nation.

In the last 12 months 2010 affordability across the country has fallen by 18.3 per cent.

“The three interest rate rises in the first half of 2010 have really hit home and housing affordability is once again on a clear downward trajectory,” Mr Dale said.

“A further rate hike in November will see affordability drop in the December quarter, an outcome obviously not aided by trading banks adding fuel to the mortgage rate fire.

“It now takes an income double the average to affordably service a mortgage on a median priced dwelling in Australia’s two largest cities.”

Across Australia’s capital cities the temporary improvement in housing affordability in the September 2010 quarter was most evident in Adelaide (6.3 per cent), followed by Perth (5.9 per cent), and Brisbane (5.4 per cent).


Subscribe & don’t miss a single episode of Michael Yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to Michael Yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.


Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.

Michael Yardney


Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au

'HIA says affordability is still an issue' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.