An Article from The Adviser
Housing Affordabilty - Best in a decade
A spate of interest rate cuts over the last 12 months has helped housing affordability to reach its best levels since the first half of the last decade.
According to the Australian Housing Outlook report, housing affordability has improved across almost every capital city over the last 12 months.
“Outside of 2009 when interest rates were at 40 year lows, housing affordability in Sydney is at its best level since 2001, despite being the least affordable capital city,” the report read.
“Similarly, affordability in Brisbane is at its best level since 2003, and Adelaide and Perth are at their most affordable since 2004.”
The report said the combination of a fall in median house prices, coupled with a 95 basis point reduction in the standard variable interest rate over 2011/12, has seen housing affordability improve across all cities.
And while affordability has already improved significantly over the last 12 months, BIS Shrapnel’s Robert Mellor told media in Sydney yesterday that he expects further improvement in housing affordability over the coming year as the average standard variable rate is expected to fall another 40 basis points in 2012/13.
As per the report, homes in Sydney were considered to be the “least affordable” of all the capital cities, while Canberra was considered to have the “most affordable properties” when monthly mortgage repayments and the average income are taken into account.
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