Housing affordability improving slowly in all mainland capitals: HIA

Buying a home became a little bit easier in the September quarter in most capitals for the third consecutive time, according to the latest HIA housing affordability report.

Dwellings became 1.2% more affordable over the quarter, 5.2% more affordable than the same time in 2010.

“Continued earnings growth and a small decrease in the mortgage lending rates worked to further improve housing affordability… These factors more than offset a modest increase in the median house price,” says HIA senior economist Andrew Harvey.

“Affordability looks to now be trending in the right direction, and with interest rate cuts in November and December we will hopefully see this trend continue. However, potential home buyers should be aware that these underlying factors could see housing return to sustained price growth at some stage in 2012.”

Housing affordability increased in all Australian capitals, with the exception of Hobart.

Sydney improved 1.9%, Melbourne 0.8%, Brisbane 0.7%, Adelaide 4.5%, Perth 0.4% and Canberra 1.8%. Hobart went down 0.5%.

Affordability improved in all non-metropolitan areas. New South Wales improved 1.2%, Victoria 1.6%, Queensland 0.3%, Western Australia 1.3%, South Australia 6.6% and Tasmania 0.1%.