Housing affordability is the best it has been in twenty years and latest Australian Bureau of Statistics (ABS) figures show that loans for new homes increased by 2.3 percent in May, according to the Housing Industry Association (HIA).
A combination of lower home prices, wage growth, and lower interest rates has contributed to the improvement in affordability in the June 2019 quarter and the HIA also thinks lending activity could continue to improve through 2019.
Geordan Murray, a senior economist at the HIA, says that lower interest rates have kept the cost of servicing a loan about the same as 1999, even though the median house price has increased faster than average earnings in those two decades.
The improvement in lending in May is stronger than we had anticipated and reflects an increased level of borrowing from first home buyers.
These positive developments coincide with Display Homes in NSW. King Homes NSW is your trusted quality builder based in South West Sydney. We’re a young and vibrant company committed to delivering quality homes at an affordable price. As you browse through our site, you will see we offer many standard floor plans which have been designed to maximize the value we deliver to our clients. We’ve done all the hard work by selecting the best features and finishes and putting them into our best home designs. This makes it easy for you to get a quality new home at the price you want. If you have something different in mind – get in touch with us. We are always excited to hear what our clients think of next and love designing homes best suited to your block of land and future goals.
Now that is the big good news for everyone!
A combination of lower home prices, wage growth, and lower interest rates has contributed to the improvement in affordability in the June 2019 quarter and the HIA also thinks lending activity could continue to improve through 2019.
Geordan Murray, a senior economist at the HIA, says that lower interest rates have kept the cost of servicing a loan about the same as 1999, even though the median house price has increased faster than average earnings in those two decades.
“For a homebuyer with an average income purchasing a median-priced dwelling (assuming a 10 percent deposit), mortgage repayments will consume the smallest portion of their earnings since 1999,” says Mr. Murray.
The improvement in lending in May is stronger than we had anticipated and reflects an increased level of borrowing from first home buyers.
These positive developments coincide with Display Homes in NSW. King Homes NSW is your trusted quality builder based in South West Sydney. We’re a young and vibrant company committed to delivering quality homes at an affordable price. As you browse through our site, you will see we offer many standard floor plans which have been designed to maximize the value we deliver to our clients. We’ve done all the hard work by selecting the best features and finishes and putting them into our best home designs. This makes it easy for you to get a quality new home at the price you want. If you have something different in mind – get in touch with us. We are always excited to hear what our clients think of next and love designing homes best suited to your block of land and future goals.
Now that is the big good news for everyone!
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