No Housing Bubble claimed Residex
According to Residex founder, John Edwards, despite moderate house price growth and recent reductions of interest rates, the market is not in danger of inflated prices or headed for a housing bubble.
One of the factors keeping the sector in line is affordability, because there are still plenty of families that believe it is cheaper to rent, claimed Edwards.
The amount of spending power that families have after monthly loan repayments ranges from $880 in Sydney to $1,457 in the ACT.
According to Residex, disposable income after rent is paid can range from $1,057 in Hobart to $1,537 in the ACT.
Edwards commented that this factor of having around $1,000 per month left to live on is an issue that is deterring many families from buying, as based on affordability they have more money if they rent.
He forecasted that owning house or land property assets is going to become less prevalent, and that owner-occupied units will grow, as will renting in some city areas.