Housing Affordability Sees Improvement

Those considering buying residential property in Australia may be encouraged by recent figures from the Housing Industry Association (HIA).

Data from the HIA-Commonwealth Bank Housing Affordability Index indicates that housing affordability in Australia has seen improvement in the last five consecutive quarters.

HIA senior economist Andrew attributed the March quarter rise in affordability to "a modest increase in earnings, a modest decline in lending rates and a softening in the median dwelling price".

"Those trying to get a foothold into the housing market will welcome the recent improvement in affordability, and we should see further improvement in coming quarters as the May rate cut flows through."

Mr Harvey was referring to the recent 50 point basis cut announced by the Reserve Bank of Australia at the beginning of the month and the subsequent interest rate drops enacted by major lenders.

Potential property buyers may wish to take advantage of the current market in which borrowing rates are relatively low and houses are relatively affordable.

The HIA-Commonwealth Bank Housing Affordability Index rose by 6.4 per cent (3.7 points) in the March 2012 quarter to be 11 per cent (6.1 points) higher over the year.