Best Time To Buy Is

The best time to buy property is? This is a question we often get asked and the answer could well be now is the best time to buy a house. Why?

Each quarter the HIA-CBA Affordability Index looks at housing affordability across the nation and the June Quarter’s report indicates favourable affordability (download an extract here). In fact the report says housing affordability has reached its most favourable levels in 20 years.

Obviously things change over 20 years an it’s all relative. House prices have gone up (and down and up), wages have gone up, the cost of living has gone up but this Report looks at a range of influencers that impact on the percentage of an average earner’s income against a mortgage debt. “For a home buyer with an average income purchasing a median priced dwelling (assuming a 10 percent deposit), mortgage repayments will consume the smallest proportion of their earnings since 1999.

Today’s figures represent a levelling in the market and the low interest rates currently (two cuts in succession by the RBA) offset any imbalance between growth in house prices and incomes:

• softening of the housing market
• improvements in wage growth (modest)
• lower interest rates

More details on the HIA and membership can be found online here

Extract of information from the June 2019 Quarter Affordability Report. The information provided here is for general information purposes only and we recommend anyone interested in buying a home consult an appropriate licenced and certified financial lender and legal representation.</small?

http://www.apra.gov.au/