Update: Australian Housing Affordability
Iden Money presents excerpts from the REIA Deposit Power Housing Affordability report for the September quarter 2010.
(This article is an update on the original article on Housing Affordability and looks at housing affordability on a national basis for September 2010 quarter. Click here to see the original article.)
The year to September 2010 recorded the largest annual decline in housing affordability since the beginning of the decade, with the proportion of income required to meet loan repayments increasing 5.8 percentage points to 34.8% over the year.
Over the September quarter, housing affordability decreased 0.2 percentage points nationally. Despite the decline, some states and territories experienced a moderate improvement in affordability over the quarter, with the exception of the Australian Capital Territory, Queensland and Victoria where declines were evident.
During the quarter, the Reserve Bank of Australia’s (RBA) cash rate remained on hold at 4.5%. Whilst the average quarterly standard variable rate remained unchanged during the quarter, average quarterly fixed rates declined moderately, albeit enough to record the largest quarterly decrease observed during the year.
The Australian Capital Territory recorded a decline in housing affordability, but it remained the most affordable state or territory to own a home, with the proportion of income required to meet loan repayments increasing 0.8 percentage points to 18.8%; 16.0 percentage points below the national average. Read More »
Posted by Iden on Friday the 7th of January, 2011. Currently No Comments »
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