The Housing Industry Association (HIA) has found that housing affordability has continued to strengthen in the June 2012 quarter.

 

The HIA-Commonwealth Bank Housing Affordability Index posted a 1.1 per cent growth in the June quarter, finishing at 10.6 per cent higher over the year.

 

HIA’s Chief Economist, Dr Harley Dale, said the improvement is heartening news for Australian households.

 

"Excluding the GFC period when interest rates dropped sharply, housing affordability is at its healthiest level since 2003," Dr Dale said.

 

"The recent improvement in affordability is welcome news for those trying to get a foothold into or advance within the housing market.

 

"It is also an encouraging bright spot for an industry that, in terms of current activity, remains a clear area of weakness within the Australian economy.”

 

Despite the positive news, Dr Dale urged caution in interpreting the data, saying that the improvement is largely cyclical and more work remains to be done to address the ‘high and inefficient’ taxation in the sector.

 

"Policy reform remains very slow, to the detriment of households, businesses, and overall economic performance," added Harley Dale.