Thứ Hai, 24 tháng 3, 2014

Housing continues to be as affordable since it was a decade ago

THIS home at Oakdale Rd, New Norfolk recently sold for $316,000. It can be a single of Australia’s most inexpensive suburbs.

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DESPITE what many buyers may believe, new research has shown Australian homes are still as affordable because they were a decade ago.


Analysis by CommSec chief economist Craig James has says home prices are about four times household disposable income.

He was quoted saying this ratio was broadly unchanged from a decade ago.

“Over the past decade disposable income per household has risen around 70 per cent while


average home price has lifted around 67 per cent,’’ he said.

“Home values may be up, but so might be disposable incomes,’’ he was quoted saying.

Mr James said Australians had become richer as time passes along with earlier times decade, incomes had grown slightly faster than home prices.

“But broadly on the decade little has changed regarding home affordability - it's gone

sideways,’’ he said.


He explained certainly people spent much more about homes together bigger and better homes than they did a decade ago, so that they thought housing was less affordable.

But he was quoted saying if you checked out it at a purely financial ratio, things hadn't changed much.

“Certainly homes are less affordable than 2 decades ago, but that's not because income growth has become sluggish, but because wealthier Australians, using lower rates of interest, and benefiting

from more affordable basic necessities like food, clothing and transport, have channelled extra dollars to the family home.

“Homes are bigger as well as excellent quality than 19 years ago.’’

Mr James said the newest figures in the RP Data/Rismark Home value index showed the median cost of a home across Australia, was $450,000.

The Australian Bureau of Statistics national accounts estimate of disposable income per household was $111,919.

“In the last year the median home price rose by 5.9 percent, outpacing the 1.7 per-cent lift in income per household,’’ Mr James said

“But interestingly over the past decade, the standard income per household has risen by 70.6 per cent, outpacing a 66.7 per-cent lift home based prices.’’

As outlined by RP Data, most of Australia’s least expensive suburbs come in South Australia, Queensland or Tasmania.

It found Elizabeth Vale, in Adelaide was Australia’s most affordable capital city suburb.

The northern Adelaide suburb includes a median property value of $143,452.

Recent sales include, 21 Rollison Rd, Elizabeth Vale which sold for $195,000.

21Rollison Rd, Elizabeth Vale has four bedrooms and ducted air conditioning. Picture: realestate.com.au Source: Supplied

Nearby Elizabeth North was the second most affordable suburb using a median property worth of $159,438. The suburb was established by the South Australian Housing Trust in 1955.

Recent sales include 11 Chirton St, Elizabeth North which sold for $142,500.


The timber-frame home at Chirton St, Elizabeth North has three bedrooms.Source: Supplied

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