August 18, 2010Higher interest rates and the lack of additional fiscal stimulus to first time buyers of new homes weighed down the Queensland market in the June quarter.
The latest
Housing Industry Association (HIA) - CBA Housing Affordability Report shows affordability deteriorated in most capital cities and regional areas in the three months to June.
HIA Chief Economist Harley Dale say as housing affordability slips away, so too does the chance for many Australians to realise their dream of owning a home.
“Unless as a nation we are willing to accept that home ownership is no longer a fundamental tenet of our society worth fighting for, then substantial federal engagement in addressing plummeting housing affordability is required,” Dale says.
“There has been a dire lack of commitment in this Federal election campaign to address the substantial hurdles aspiring home owners face. Helping Australians afford a roof over their head is surely a fundamental responsibility of government,” he says.
The HIA-CBA Housing Affordability Index fell by 9.1 percent in the June quarter to be 32 percent lower compared to the same period last year.
The Index combines interest rates, household incomes, and home prices to determine affordability conditions.
Affordability declined by 9.5 percent over the June quarter across the nation’s capital cities and was down by 6.7 percent in Regional Australia.
STATE RESULTSIn the June quarter, Brisbane’s affordability declined by 7.4 percent, and was down 29.1 percent over the 12 months to June 2010.
Regional Queensland’s affordability fell by 4.8 percent and was 22.3 percent worse than 12 months earlier.
The largest falls were recorded in Sydney (-9.1 percent), Regional Victoria (-9 percent), Regional Tasmania (-8.8 percent), and Adelaide (-8.7 percent).
“Key federal policy priorities need to include a program to reduce new housing costs such as inequitable taxes and charges, better planning approvals systems, and a dedicated Federal housing and development ministry to coordinate policy across all sectors and levels of government,” Dale adds.
