Housing affordability improves
The latest data from the Housing Industry Association of Australia-Commonwealth Bank of Australia housing affordability index (HIA-CBA Index) for the March quarter indicated that housing affordability has improved.
The HIA-CBA Index climbed 12.8 per cent higher than it did 12 months ago, recording a level of 69.7 - an increase of 1.2 per cent - in the March quarter.
The figures suggest that lower mortgage interest rates and modest price rises have contributed to the improvement in housing affordability.
According to HIA senior economist, Shane Garrett, the improvement level recorded by the latest index is not indicative of all markets across the board.
Garrett noted that the overall trend across capital cities is showing continued improvement in affordability, with the capital city index increasing 2 per cent for the March quarter.
However, Adelaide, Perth and Hobart, each recorded declines in housing affordability for the same period.
Increases to dwelling prices in regional parts of Australia which were not offset by reduced interest rates also recorded a fall in affordability levels in the March quarter.