Centurion

http://www.theaustralian.news.com.au...-25658,00.html

BRISBANE is challenging Sydney as Australia's least affordable city as rising interest rates push housing affordability around the country to its worst level in 24 years.

Brisbane and Canberra were the cities hardest hit in the March quarter, according to the Housing Industry Association-Commonwealth Bank First Home Buyer Affordability Index. It shows buying a home in either city now takes a bigger chunk of household income than at any time in the past.

HIA policy chief executive Chris Lamont said it would take up to two years before home owners felt any respite from the affordability crisis.

Interest rates rose 0.8 percentage points in the March quarter because of two Reserve Bank increases and banks separately lifting their mortgage rates, hesaid.

The index hit its fourth consecutive record low as a result, the HIA said.

The HIA-CBA Index, based on the bank's new home loans, fell 15.2 per cent for Brisbane in the three months to the end of March, with the average loan repayment increasing 18.9 per cent to $3578 a month for the city.

In Sydney, the index improved by 4.1 per cent, with the average mortgage repayment $3064 a month.

Of the 13 cities and regional areas covered by the index, Sydney was the only city where buying a house became more affordable during the March quarter, while affordability for Hobart was unchanged.

Kapri

Interesting!
@boy posted something recently about melbourne's housing affordability being worse than other cities.

bcworld

....probably based on a different metric. I'm very surprised to see Brisbane's average loan repayment being so high, especially in comparison to Sydney.

asprilla

It says "The HIA-CBA Index, based on the bank's new home loans," - perhaps the banks are making less loans in the $250 - $350k mark, as your average joe worries about interest rates....leaving a larger proportion of new loans of $350+.

bcworld

I still can't see why Brisbane's figure would be $500 more than Sydney. If any part of Sydney's property market has been fairly resilient it's the top end of town. Unless this is an indicator that the entire Sydney property market is now heading south.

Buzzy--Bee

I suspect Brisbane might well be less affordable than Melbourne. The house prices in Brisbane are a bit lower but the wages are much lower.

Buzzy

asprilla

yep.

jad n rich

Basically prices in sydney have been falling, but Brisbanes got a housing shortage, so prices have remained fairly stable. Housing starts (construction) in brisbane are now 16% down, so the housing shortage may well get worse not better

Last figures we have on wages were 2007 Qld avg wage was about $54,000 Victoria about $56,000 not a great deal in it really.

Buzzy--Bee

Would be interested to see Brisbane vs Melbourne wages rather than QLD vs VIC... suspect there might be more of a difference...but I haven't looked. There certainly is in my industry.

Buzzy

nightnurse2

How come Perth didn't get a mention