HIA: Housing Affordability Increasing

Prospective homeowners are likely to welcome news that housing affordability across Australia is at its highest point since 2003, according to the Housing Industry Association (HIA).

The HIA released data supporting this announcement on Thursday(August 23) and highlights what could be an advantage for first home buyers who are looking at how to get onto the property ladder.

The latest results from the HIA-Commonwealth Bank Housing Affordability Index show that there has been a rise of 1.1 per cent in the June quarter to be 10.6 per cent higher over the year.

"This is heartening news for Australian households," said HIA chief economist Harvey Dale.
"Now is a great time to buy for those who are financially set to take that decision."

He acknowledged that this news is positive for the industry, particularly since the housing industry is an area of weakness in the economy.

"The improvement of housing affordability is largely cyclical and there remains considerable work to be done to address the high and inefficient taxation embedded in housing, especially for new homes," he added.