Our economy is the best it’s been in a decade on paper, with latest job figures being one of the biggest influences on property markets. Australia has experienced two consecutive years of at least 300,000 new jobs, according to ABS data which has resulted in almost full employment.
Despite the national dream of home ownership, it’s still cheaper to rent than repay a mortgage according to a recent Core Logic report. In fact, stronger income growth relative to rents has pushed the national ‘rent to income ratio’ to its lowest level since September 2007.
Australia’s two largest cities of Melbourne and Sydney have a strong influence over the national trends, but outside these markets, property price growth has been slower in other states. This has resulted in housing affordability to be on the improve with rising incomes and falling mortgage rates.
Property prices in both Melbourne And Sydney are now falling, resulting in some moderate improvement in affordability, but both remain significantly less affordable than other capital cities. Darwin and Canberra are currently the pick with respect to housing affordability compared to tother capital cities, due to high incomes and an ongoing decline in property prices.