Affordability at 'healthiest' level since 2003

by Caroline Dann27 Aug 2012

Overall housing affordability has reached the "healthiest" levels since 2003, says the Housing Industry Association (HIA).

The HIA-Commonwealth Bank Housing Affordability Index's June quarter results showed a 1.1% overall improvement, making it 10.6% higher over the year.
Brisbane and Melbourne were the only two capital cities to record a drop in affordability.
"It is an encouraging bright spot for an industry that, in terms of current activity, remains a clear area of weakness within the Australian economy," said HIA's chief economist Dr Harley Dale.
He did warn the improvement in affordability is "largely cyclical" and more needed to be done to "address the high and inefficient taxation embedded in housing, especially for new homes."
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