Australian Housing Affordability 2016
Australian housing affordability has improved slightly during the September quarter, partly in thanks to the two recent interest rate drops.
Despite some financial institutions deciding not to pass on the full rate cut, the latest HIA Affordability Report reveals affordability has improved in six of the eight capital cities across the country.
The largest improvement was felt in Darwin with median house prices falling 4.5 per cent in, while prices in regional Northern Territory declined by 11.3 per cent.
Hobart experienced the second highest level of improvement with experts stating mortgage repayments are typically less than 30 per cent of earnings.
Perth is experiencing a similar situation to Darwin with house prices declining due to mining slowing down. Favourable affordability in Perth is being driven by continued falls in dwelling prices across the city.
Adelaide also improved with South Australian wages growth assisting in a 4.9% increase in the past year, far exceeding the national average
In contrast, affordability dropped in Melbourne and Canberra due to price growth with median dwelling prices in Melbourne increasing by 5.4%.
Overall, current conditions are quite favourable for those looking to enter the market in the majority of Australian capital cities.