Housing affordability increases throughout Australia
An encouraging report from the Housing Industry Association (HIA) may promote property investment in Australia, as conditions look to favour buyers.
Numbers from the HIA-Commonwealth Bank Housing Affordability Index for the December 2011 quarter indicate a 2.2 per cent rise in affordability.
The market saw escalation for all four quarters, adding up to a total increase of 8.3 per cent from the previous year.
HIA’s senior economist Andrew Harvey attributed the rise to positive conditions in the residential property market.
He said: “A decrease in mortgage lending rates and continued earnings growth more than offset a modest increase in the median dwelling price to further improve housing affordability in the December 2011 quarter.”
Mortgage lending rates dropped 0.45 percentage points and weekly ordinary time earnings displayed growth of 0.5 per cent.
It may be beneficial to enter the market when prices are affordable in order to garner the best return when the value goes up – and Mr Harvey displayed encouragement for potential buyers.
He said: “When the recent improvements in affordability are considered alongside the easier access to skilled trades as home building activity has eased, it increasingly looks like a good time to buy a new home for those financially able to do so.”
Positive economic developments in Australia may also see increased investment activity.
Mining projects in Western Australia, Northern Territory and Queensland will likely spur growth from the profitable ventures of the industry in those areas.
New trade agreements, commercial expansion and amped-up tourism efforts could support progress in Victoria and New South Wales as the state governments put funds towards local projects.
The potential for lucrative property investment is encouraged by continued efforts to boost the Australian economy as well as the ideal circumstances to enter the market.
Got something to say? Post a comment...
You must be logged in to post a comment.