The HIA Housing Affordability Index shows affordability for homebuyers slightly eased back in the June 2016 quarter.
According to the HIA Affordability Report, affordability fell by 3.7 per cent and was 2.1 per cent less favourable than the same period a year earlier.
The figures were quite diverse when comparing state-to-state and capital cities to regional areas.
Capital city housing affordability fell by 4.3 per cent, while the regional market index saw a 1.9 per cent improvement.
The geographic variation of affordability is especially evident when comparing Melbourne to Perth. Over the last year, the median dwelling price in Perth has fallen by 4.7 per cent while Melbourne’s has grown by 11.5 per cent.
These differences are due to relative economic performances of states. The Western Australian economy is winding down the mining boom and as a result the rate of population growth has fallen. Victoria on the other hand has experienced a healthy level of growth and continues to record the strongest rate of population growth in the country.
Affordability Index Results - June 2016
Figures from the HIA Housing Affordability Index show the following adjustments to national affordability:
Perth (+3.2 per cent), Darwin (+2.9 per cent) Hobart (+2.2 per cent).
Melbourne (-7.4 per cent), followed by Canberra (-5.7 per cent), Sydney (-1.6 per cent), Adelaide (-1.3 per cent), Brisbane (-1.0 per cent).
While affordability may have slightly slumped in several states, the figure is not cause for worry. The past year has seen excellent rates of building approvals, project commencements and loan applications.
Industry experts state the desire to build and own homes is still the Australian dream, though it may take slightly longer for new and first homebuyers to achieve.