Thứ Sáu, 21 tháng 3, 2014

Housing is as affordable since it was obviously a decade ago

THIS home at Oakdale Rd, New Norfolk recently sold for $316,000. It can be available as one of Australia’s most economical suburbs.

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DESPITE what many buyers might imagine, new studies show Australian homes are nevertheless as affordable since they were about ten years ago.


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

He said this ratio was broadly unchanged at 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 prices can be up, but so can be disposable incomes,’’ he said.

Mr James said Australians had become richer as time passes as well as in the past decade, incomes had grown slightly faster than home prices.

“But broadly above the decade little has changed with regard to home affordability - it has gone

sideways,’’ he explained.


He was quoted saying certainly people spent on homes coupled with bigger and better homes than they did ten years ago, to make sure they thought housing was less affordable.

But he was quoted saying once you considered it from the purely financial ratio, things had not changed much.

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

from less expensive basic necessities like food, clothing and transport, have channelled extra dollars in the family home.

“Homes are bigger and of top quality than 2 decades ago.’’

Mr James said the modern figures through 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 per-cent, outpacing the 1.7 % lift in income per household,’’ Mr James said

“But interestingly within the last decade, the average income per household has risen by 70.6 %, outpacing a 66.7 percent lift home based prices.’’

According to RP Data, lots of Australia’s lowest priced suburbs have been in South Australia, Queensland or Tasmania.

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

The northern Adelaide suburb has 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 heating and cooling. Picture: realestate.com.au Source: Supplied

Nearby Elizabeth North was the second least expensive suburb with a median property importance 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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