Thứ Sáu, 21 tháng 3, 2014

Housing is still as affordable mainly because it would be a decade ago

THIS home at Oakdale Rd, New Norfolk recently sold for $316,000. It truly is in a of Australia’s least expensive suburbs.

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DESPITE what many buyers may believe, new research has revealed Australian homes are nevertheless as affordable because they were a decade ago.


Analysis by CommSec chief economist Craig James has says home values are four times household disposable income.

He explained this ratio was broadly unchanged at a decade ago.

“In the last decade disposable income per household has risen around 70 per cent while the


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

“Home prices might be up, but so might be disposable incomes,’’ he explained.

Mr James said Australians had become richer with time plus the last decade, incomes had grown slightly faster than home values.

“But broadly over the decade little has changed with regard to home affordability - it's gone

sideways,’’ he was quoted saying.


He was quoted saying certainly people spent more on homes along bigger and better homes than they did ten years ago, so that they thought housing was less affordable.

But he said whenever you looked over it from the purely financial ratio, things hadn't changed much.

“Certainly homes are less affordable than 19 years ago, but that's not because income growth has been sluggish, but because wealthier Australians, using lower interest levels, and benefiting

from more affordable basic necessities like food, clothing and transport, have channelled extra dollars in the family house.

“Homes are bigger and of higher quality than twenty years ago.’’

Mr James said the modern figures on 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.

“Within the last year the median home price rose by 5.9 per-cent, outpacing the 1.7 percent lift in income per household,’’ Mr James said

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

In accordance with RP Data, many of Australia’s lowest priced suburbs come in South Australia, Queensland or Tasmania.

It found Elizabeth Vale, in Adelaide was Australia’s least expensive capital city suburb.

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

Nearby Elizabeth North was the other lowest priced suburb which has a median property worth of $159,438. The suburb was established through 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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