Rate cuts make housing more affordable
Housing is at its most affordable level in ten years according to the Australian Housing Affordable Housing Report. As interest rates have come down over the last two years, so has the average proportion of homeowners' income spent servicing their mortgage.
Nationally, about 28.7 per cent of income is being spent on mortgage repayments across the nation. NSW remains the most expensive housing market in Australia. REIA president Peter Bushby said the downward trend reflected rate cuts and increasing housing supply.
“Affordability is improved in all states and territories when compared to the same time last year and no doubt the seven interest rate cuts since November 2011 have played a role.”
Source: Herald Sun