Housing Affordability Dramatically Improves

Housing affordability improved by 14.6% in the March quarter according to the HIA – CBA First Home Buyer Affordability Report The largest improvements were recorded in Hobart, Adelaide, and Sydney.

According to the report, a combination of the boost to the First Home Owners Grant, record low interest rates and relatively stable house prices means housing is at its most affordable in seven years.  The March quarter improvement was on top of a 40% surge at the end of 2008.

Over the March 2009 quarter the average home loan repayment fell by 11% to $1,831 per month, significantly lower than the previous amount of $2,056. A further improvement in affordability is expected in the June quarter, when the figures are released in the next couple of months.

The record low interest rates, combined with first home owners incentive schemes and stable house prices are making 2009 a very good time to consider entering the market or adding to your portfolio.  Stock levels of quality existing properties are low, and this is making it tough to get in, but those who persist will be rewarded over the long term.