Home loans customers should find houses 'more affordable'

Friday 14 August 2009

Article by Mozo

Those looking to compare low interest home loans may be interested to hear a recent report has suggested property affordability is better now than it was a year ago.

According to the Housing Industry Association and Commonwealth Bank First Home Buyer Affordability Index, buyers should now find a residence easier to come by.

The total year-on-year change was a 41 per cent rise, however, there was a 5.1 per cent fall in the second quarter of 2009.

One reason for the dip in affordability was increases in prices paid for existing properties, the report revealed.

However, it showed an increase in construction of new abodes is expected in the second half of the year, which could improve people’s prospects of buying a property.

"The lift in established house prices stands in marked contrast to the predictions of a house price rout," explained HIA chief economist Harley Dale. "But we have neither boom nor bust conditions."

Meanwhile, the Commonwealth Bank of Australia recently announced an increase in its fixed-rate home loans.

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