Would-be homebuyers should take heart from the latest survey showing a steady increase in housing affordability in all states.
The Housing Industry Association/Commonwealth Bank housing affordability index released on Tuesday, showed a rise of 5.3 per cent in the September quarter, for a reading of 65.8.
The index has now been rising for seven consecutive quarters, and is up by 15 per cent compared to the same quarter last year.
Properties became more affordable in all regions, with Hobart the most affordable city, at 78.3, Adelaide at 71.1, and Brisbane 68.5.
Sydney was the least affordable, with an index of 54.2, followed by Melbourne at 63.6 and Perth at 64.1.
HIA chief economist Harley Dale said a number of conditions had boosted the affordability picture in Australia, although there was still some reluctance for people to enter the housing market.
‘‘Housing affordability has been improving on the back of steadily growing incomes, falling interest rates, and easing dwelling prices,’’ he said. ‘‘At the same time, however, transactions volumes have remained historically low as economic uncertainty has weighed heavily on households willingness to engage in the residential property market."
He added that an interest rate cut from the Reserve Bank of Australia (RBA) in December could encourage buying.
The RBA left rates on hold at 3.25 per cent at its November meeting, after cuts in May, June and October.