Now is "a great time to buy" australian property

Now is "a great time to buy" Australian property, according to the Housing Industry Association.

The HIA's latest report shows the Oz real estate continued to become more affordable in the second quarter of the year, with just two capital cities (Melbourne and Brisbane) becoming more expensive - for the rest of the country, affordability improved. It may not be good news for those looking to sell property, but it certainly helps reassure homeowners waiting for the market to return to boom years. 

"Excluding the GFC period when interest rates dropped sharply, housing affordability is at its healthiest level since 2003," said HIA Chief Economist, Dr Harley Dale. "That is heartening news for Australian households."

A further rise in the HIA-Commonwealth Bank Housing Affordability Index in the June 2012 quarter marked the sixth consecutive quarter of improvement. The HIA-Commonwealth Bank Housing Affordability Index improved by 1.1 per cent (0.7 points) in the June 2012 quarter to be 10.6 per cent (6.0 points) higher over the year.

"The recent improvement in affordability is welcome news for those trying to get a foothold into or advance within the housing market," said Harley Dale. "It is also an encouraging bright spot for an industry that, in terms of current activity, remains a clear area of weakness within the Australian economy."

"The improvement in housing affordability is largely cyclical and there remains considerable work to be done to address the high and inefficient taxation embedded in housing, especially for new homes."

"Policy reform remains very slow, to the detriment of households, businesses, and overall economic performance," added Harley Dale.