Home Ownership possible for more Australians

Housing affordability is the best it's been in five years and it’s expected to get even better.
The HIA-CBA First Home Buyer Affordability Index improved by 39.2 per cent in the December 2008 quarter.
Housing became more affordable in all capital cities and regional areas, but the largest improvements were in Perth, Brisbane and regional Western Australia.
Over the December 2008 quarter the average home loan repayment fell 26 per cent from $2796 to $2056.
Chris Lamont of the Housing Industry Association (HIA) says the improvement in housing affordability was due to big reductions in variable mortgage rates and the First Home Owners Boost.
"For would-be first homebuyers conditions have improved significantly and clearly many Australians are taking up the opportunity to get into homeownership," he says.
Based on HIA economic modelling, 135,000 households have come out of mortgage stress since December 2008.
"Previously a household would have to be earning in the order of $85,000 per annum to afford a modestly priced home without going into severe mortgage stress," says Lamont.
"The improvement in housing affordability means those on a more modest income can now contemplate a home of their own."
According to the HIA further interest rate cuts in the first quarter of this year are expected to show another improvement in housing affordability in the next report.
Australian Property Investor editor Eynas Brodie encourages prospective first homebuyers who are currently renting to seriously consider entering the market this year, before buying conditions change.
"With the gap closing between home loan repayments and rents, potential homeowners should crunch the numbers to see if they can afford to purchase their own place while interest rates are falling and the government incentives are being offered.
"Interest rates won't stay low forever and many expect property prices to rise as consumer confidence returns."