Affordability Benefits
Global economic uncertainty has caused the side-effect of rises in housing affordability, it has been claimed.
The HIA-Commonwealth Bank Housing Affordability Index saw slight improvement over the June quarter, rising 0.8%. The result the index to 7.2% above its level in the June quarter of 2010.
HIA senior economist Andrew Harvey indicated the outcome was largely driven by the global economic uncertainty which saw the RBA leave rates on hold and improved funding conditions for banks. The HIA claimed average weekly earnings also aided the result, rising 1.2% in the quarter.
"Earnings growth and a small decrease in mortgage lending rates worked to improve housing affordability over the June 2011 quarter.
These factors more than offset a small increase in the median house price," Harvey said.
Median house price outcomes may also have factored into the result. Though Harvey claimed median prices saw a small increase over the quarter and CBA lending figures claimed a 0.8% rise in median prices, ABS figures show house prices declined 0.1% for the quarter across capital cities, to be down 1.9% from the June quarter of 2010.
