Housing affordability has improved across the board for the seventh consecutive quarter, according to a leading industry source.
Harley Dale of the Housing Industry Association asserted that there are a number of contributing factors to improved affordability – which could represent good news for both buyers and sellers.
"Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices," he said – though he was quick to add that buyers remain cautious in the face of an uncertain economy.
One solution that could improve things considerably, he said, is a final cut to the cash rate when the Reserve Bank of Australia's Monetary Policy Committee has its last meeting of 2012 in early December.
"An increase in home buyer action can occur without generating undue inflationary pressure and would assist a much-needed recovery in new residential construction activity," said Dale,
This would be welcome news for those looking to sell property in Wollongong or the Illawarra. The latest HIA comments follow reports of tight rental figures for the area, which indicate the opportunity to make a local property investment.
In fact, last week Real Estate Institute of NSW president Christian Payne asserted that the government needs to take action to encourage investors back to the market to address a chronic shortage of rental properties.
Across the state of NSW, September-quarter figures published by the HIA reveal that new-build construction activity rose by 9.9 per cent – an improvement the association referred to as "pleasing".
Many property investors may be looking to make improvements to existing homes, rather than buying new ones. The HIA figures also revealed that the number of alterations and additions carried out across NSW increased by 0.3 per cent – bucking a national decline.
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