Thứ Hai, 24 tháng 3, 2014

Housing remains to be as affordable the way it would be a decade ago

THIS home at Oakdale Rd, New Norfolk recently sold for $316,000. It can be in a single of Australia’s lowest priced suburbs.

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DESPITE what many buyers may think, new research has shown Australian homes continue to be as affordable when they were a decade ago.


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

He explained this ratio was broadly unchanged coming from a decade ago.

“During the last decade disposable income per household has risen around 70 percent while the


average home price has lifted around 67 per cent,’’ he said.

“Home prices could possibly be up, but so can be disposable incomes,’’ he was quoted saying.

Mr James said Australians had become richer over time and in days gone by decade, incomes had grown slightly faster than home values.

“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 and had bigger and better homes than they did ten years ago, so that they thought housing was less affordable.

But he was quoted saying when you viewed it coming from a 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 interest rates, and benefiting

from cheaper basic necessities like food, clothing and transport, have channelled extra dollars in to the home.

“Homes are bigger as well as higher quality than 20 years ago.’’

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

“But interestingly in the last decade, the normal income per household has risen by 70.6 %, outpacing a 66.7 per cent lift in home prices.’’

As outlined by RP Data, many of Australia’s most inexpensive suburbs have been in South Australia, Queensland or Tasmania.

It found Elizabeth Vale, in Adelaide was Australia’s lowest priced capital city suburb.

The northern Adelaide suburb includes a median property importance 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 cooling and heating. Picture: realestate.com.au Source: Supplied

Nearby Elizabeth North was the next most affordable suburb which has a median property worth of $159,438. The suburb was established with 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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