Australia's housing market labelled Severely Unaffordable.
Housing in Australia has been called vastly over priced in the Annual Demographia International Housing Affordability Survey, increasing the importance of a home loan comparison for potential buyers.
Despite a slight improvement in affordability compared to last year, two thirds of the nations housing market was classed as Severely Unaffordable, giving Australia one of the most unaffordable housing markets in the developed world.
The report divided the world's housing markets into 4 key categories - Affordable, Moderately Affordable, Seriously Unaffordable and Severely Unaffordable - with any score above 4.0 being considered Seriously Unaffordable. And it will come as no surprise to many that Australia had the most Severely Unaffordable housing markets in the world and no markets making the Affordable or even Moderately Affordable categories.
Sydney was classed as the least affordable market in Australia and the 3rd least affordable market in the world, with a median score of 8.3. Melbourne received a score of 7.5 followed by Adelaide 6.5, Perth 5.9 and Brisbane 5.8. Shepparton and Mildura in Victoria were the country's least expensive housing markets.
The report also reflects that apart from Sydney, each of Australia's major markets was in the Affordable bracket during the mid 1980's before urban consolidation.
The high price of housing in Australia puts enourmous importance on the need for home buyers to carry out a home loan comparison before entering the market. Finding a low rate home loan is one of the biggest steps Aussies can make towards reducing the cost of repayments on a new home.
Have a question about home loan? Ask the gurus at Mozo Answers