Housing affordability worsens
It has released its latest Home Affordability Report, covering March to May 2014. It compares the average weekly earnings with the median dwelling price and mortgage interest rates.
Author Professor Bob Hargreaves said the decrease was not a surprise.
“The average annual wage increase of $34.52 was not enough to offset a $38,000 increase in the median house price. This deterioration in affordability is likely to continue as recent interest rate increases are incorporated into the debt servicing costs for home mortgages.”
The decrease of 4.5% in the national affordability index comes after a 2.8% improvement in the previous quarter.
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