Low interest rates, stable house prices and a six-month extension to the first-home buyer's grant have pushed the Housing Industry Association's affordability index to a seven-year high.
But as the association hailed the strength of the residential construction sector, Australian Industry Group figures painted a bleak picture for construction in other areas of the economy.
According to the Australian Industry Group, Australia's top construction companies are predicting a significant slowdown in the engineering and commercial sectors in the next two years because of the global slowdown.
Housing affordability improved by 14.6 per cent in the March quarter 2009, leading to an 11 per cent drop in the average monthly mortgage payment, from $2056 to $1831.
For more, pick up a copy of today's Canberra Times.
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