By a staff reporter
Housing affordability improved again in the March quarter, driven by easing mortgage lending rates and subdued house price developments.
The Housing Industry Association of Australia-Commonwealth Bank of Australia housing affordability index increased 1.2 per cent in the three months to March 31 to a level of 69.7.
The index sits 12.8 per cent higher than it did a year ago.
However, HIA senior economist Shane Garrett warned the improvements to affordability in the update were not universal.
"Housing affordability across regional Australia deteriorated mildly in the March quarter this year, due largely to dwelling price increases which offset the effects of reduced lending rates," he said.
"Overall, the trend across the capital cities is one of continued improvement in affordability, with the capital city index increasing by two per cent in the March 2013 quarter.
"However the cities of Adelaide, Perth and Hobart each saw declines in affordability."
Mr Garrett said, some developments notwithstanding, the overall trend of improvement continued into 2013 and flagged further improvements over coming quarters as the latest RBA rate cut flowed through to households.
