House sales reached $209 billion in the past financial year, which is the highest ever recorded, according to the Real Estate Institute of Australia (REIA).
The REIA has released its annual summary of the residential and commercial real estate market, providing a unique insight into what the market has done over the 2006-07 financial year.
REIA President Noel Dyett said that investors and first home buyers made a tentative return to the housing market during 2006-07, although their numbers were still comparatively subdued.
"Housing affordability declined by 8.3 per cent over the financial year, with yet another quarter where more than 30 per cent of a Median Family Income was required to repay an average mortgage, and rental affordability has also declined, with vacancy rates tight across the country", Mr Dyett said.
"As a result, rents have increased by an average of 12 per cent during 2006-07."
He added that ABS figures show 24.8 per cent of all renters spend 30 per cent or more of their income on housing.
The REIA welcomed the renewed focus on housing affordability in the lead-up to the 2007 Federal Election.
`The REIA looks forward to the introduction of the Rudd Government initiatives including the first home saver scheme, housing rental scheme, and housing affordability fund,' said Noel Dyett.
`The Federal Government should also consider including home ownership as the fourth pillar in the Government policy on superannuation and self-funded retirement, together with mandatory superannuation savings, voluntary savings, and aged pensions,' he added.
