Big Improvement in Housing Affordability, says HIA

"The HIA-CBA First Home Buyer Affordability Index improved by a large 39.2 per cent in the December 2008 quarter making house affordability the most affordable in five years.

Over the December 2008 quarter the average home loan repayment fell by 26 per cent to $2,056 per month, significantly lower than the previous amount of $2,796. Further reductions in mortgage interest rates in the first quarter of this year are expected to yield another improvement in housing affordability in the next report.

HIA’s Chief Executive – Association, Chris Lamont said, the healthy improvement in affordability reflected big reductions in variable mortgage rates, and the boost to the First Home Owners Grant.

“For would-be first home buyers conditions have improved significantly and clearly many Australian’s are taking up the opportunity to get into homeownership,” said Chris Lamont.

The improvement in affordability means it is now possible for more Australians to purchase a home of their own. HIA economic modelling based on the Australian Bureau of Statistics Survey of Income and Housing 2005/06 confirms that 135,000 households on mortgages have come out of mortgage stress since December 2008.

“Previously a household would have to be earning in the order of $85,000 per annum to afford a modestly priced home without going into severe mortgage stress. The improvement in housing affordability means those on a more modest income can now contemplate a home of their own,” said Chris Lamont.

The HIA-CBA First Home Buyer Affordability Report showed that affordability improved over the December quarter in all capital cities and regional areas, with the largest improvement occurring for Perth, Brisbane, and Regional Western Australia."

Of course, Morpheus Property are continuing to help first home owners with a 25% discount off their service fee, as well as a 50% discount off their commencement fee to $550 (GST Incl). This offer expires 30 June 2009.

Morpheus Property can help ensure first home owners get good value for money, by using experienced Buyer's Agents to search and negotiate the good deals on their behalf. This ensures a better result every time!!

Morpheus Property are getting their buyers the best property at the best price and make the process as educational as each individual would like it to be (we understand that some people want to know everything, while others just want a set of keys in their hand once it's all over).

To arrange an appointment, contact your Buyer's Agent on 1300 727 586.

Yours in property!