Home ownership in Canberra declines
Affordability is out the of the question as house prices and the continuous rising of interest rates have pushed home ownership farther away for many young Australians.
According to the news reports and figures disclosed by the Housing Industry Association-Commonwealth Bank Housing Affordability Index, the rate of affordability surged down to 22.3 per cent in the Canberra, and 28.7 for the rest of the country over the past year.
It was discovered that first home buyers in Canberra are paying monthly repayments between $2220 to $2910, and above the national average of $2629.
These figures attributed to the decline in affordability from the closing of first home buyer grant boost, the steady hike of interest rate increase of the Reserve Bank, and the continuous rise of house prices, which jumped by 13 to 20 per cent nationally since last year.
''Since March, two further rate rises and the threat of more increases over the year will see new depths of affordability plumbed, especially if new housing supply is not sustainably boosted to mitigate upward pressure on existing home values,'' the report stated.
Ben Phillips, an association economist, explained that there is a possibility that affordability on June quarter result will crash below records, similar in 2007 where interest rates were above 9 per cent.