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Despite a slight improvement in home affordability in New South Wales, the national index for housing affordability dropped by 1.7 per cent in the December quarter of 2007, the latest HIA and Commonwealth Bank report revealed.
HIA chief economist Harley Dale said that while higher interest rates would see affordability decline further during 2008, national policies announced by the government would play a vital role in improving affordability levels.
“The Federal Government has a number of policies on the table that will ensure a greater supply of new housing, which in turn will relieve this pressure [on house prices and rental costs],” Mr Dale said.
Housing affordability fell by 5.2 per cent over 2007. Average monthly loan repayments now sit at $2,689 – $94 per month more than in the September quarter 2007.
Published: 13-02-08
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