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Date Published : Friday, August 15, 2008
The HIA-Commonwealth Bank housing affordability index for first-time buyers rose by 0.4 per cent in the second quarter to 105.3 index points.
However, housing affordability remains close to a 24-year low with the index closing at 104.9 three months earlier, representing the lowest level since the index began in 1984.
The report disclosed that the average home loan repayment is $2,830 per month on a typical first-home mortgage, up from $2,799 during the first quarter.
HIA chief economist Harley Dale has claimed that first-time buyers are being hit during the current financial climate.
"High interest rates and an extremely onerous set of local, state and federal government taxes and charges on new housing continue to slug new homebuyers," Mr Dale said.
An average household now devotes close to one-third of its income to service their mortgage debt, the report calculated.
Mr Dale believes that if the Reserve Bank of Australia lowers the benchmark rate in September, it may ease the financial hardship of current homeowners but times will remain tough for first-time buyers to afford a property.
"When you are trying to recover affordability levels from 24-year lows you are going to need quite some period of time of sustained improvement to make it easier for first-time buyers," he told the Melbourne Herald Sun.
Despite the slight increase in the affordability index, homes in Sydney, Melbourne and Adelaide have been picked out as those that have become the least affordable in the past three months, which may not please first-time buyers seeking a property in these areas.
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