A variety of factors are taking their toll on the affordability of Australian property, it has been pointed out.
Higher Australian house prices, increasing interest rates and the removal of the first-time buyer boost are contributing to the decline in affordability, a study has said.
The latest Housing Industry Association (HIA) - Commonwealth Bank (CBA) First Home Buyer Affordability Report reveals that affordability fell by four per cent overall in the first quarter of 2010.
Interest rate rises imposed by the Reserve Bank of Australia in recent months are expected to lead to a continuation of this trend, suggested HIA senior economist Ben Phillips.
"Housing affordability will once again be a key issue in the mortgage belt regions of Australia," he commented.
"We are yet to see the required level of co-operation between all levels of government to deliver critical housing infrastructure without hitting new home buyers."
The current cash rate in Australia is 4.5 per cent, with the bank having raised the level every month from March.
Posted by David McElwain
Higher Australian house prices, increasing interest rates and the removal of the first-time buyer boost are contributing to the decline in affordability, a study has said.
The latest Housing Industry Association (HIA) - Commonwealth Bank (CBA) First Home Buyer Affordability Report reveals that affordability fell by four per cent overall in the first quarter of 2010.
Interest rate rises imposed by the Reserve Bank of Australia in recent months are expected to lead to a continuation of this trend, suggested HIA senior economist Ben Phillips.
"Housing affordability will once again be a key issue in the mortgage belt regions of Australia," he commented.
"We are yet to see the required level of co-operation between all levels of government to deliver critical housing infrastructure without hitting new home buyers."
The current cash rate in Australia is 4.5 per cent, with the bank having raised the level every month from March.
Posted by David McElwain
