Last month, Real Estate Institute of Australia (REIA) President, Mr David Airey appealed to the Reserve Bank of Australia (RBA) to take the state of the housing market into consideration when making their decision regarding official interest rates.
“Fortunately, the Reserve Bank have once again made a considered and accurate assessment of the property market and left official interest rates on hold,” said Mr Airey Since last month’s no change, housing affordability has once again worsened.
REIA released the Deposit Power Housing Affordability Report in early June which highlighted a decrease in housing affordability across all Australian states and territories, with the proportion of income required to meet loan repayments increasing nationally from 30.7% in the December quarter 2009, to 32.6% in the March quarter 2010.
“It has now been 12 months since we have seen any improvement in housing affordability. In March 2009, the proportion of income required to meet loan repayments was 28.8%. Nationally, the average Australian household is now spending an extra $143 per month on their mortgage, compared to the previous quarter,” he said.
“The RBA now need to look at providing stability to the housing market over the longer term,” concluded Mr Airey.