Australia's housing affordability myth busted
Despite rising interest rates and property prices, housing affordability in Australia is not as bad as widely believed, a recent report has showed.
According to Rismark National Dwelling Price-to-Income Index, housing affordability has not deteriorated; in fact, it has improved slightly over the past six years.
Rismark found that over the past six years, home prices have held between 3.7 times disposable incomes and 4.3 times incomes over the past six years. Household disposable income rose 44% since the end of 2003 while the median home price has lifted 41%, from $270,000 to $380,000. This means in December 2003, Australian dwelling prices were 4.2x disposable incomes, which is effectively where they remain today according to Rismark...
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© Your Mortgage and republished with permission; January 29, 2010
Source: Your Mortgage Magazine
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