Affordability improves nationwide

Housing in Australia is at its most affordable level in seven years, according to the Housing Industry Association (HIA).
The HIA-CBA First Home Buyer Affordability Index showed there was a 14.6 per cent improvement in affordability for the March 2009 quarter, which followed a 40 per cent surge at the end of 2008.
Over the same period the average home loan repayment fell by 11 per cent to $1831 per month, compared to the previous amount of $2056.
The HIA attributes the current affordability of housing to the boost to the First Home Owners Grant, record low interest rates and relatively stable house prices.
Affordability improved in all capital cities and regional areas in the March 2009 quarter, with the largest improvement found in Hobart, Adelaide and Sydney.
Aside from the current economic climate, the HIA's chief executive Chris Lamont says for many homebuyers there has never been a better time to buy.
"The boosted grant, which now provides a minimum of $21,000 for new homes across Australia along with the significant builder discounts on house-and-land packages, is increasing the number of first homebuyers entering the new home market."
Lamont notes that the grant has created and secured jobs in the residential construction sector.
"It is also assisting in boosting the supply of housing which we know to be grossly short of the nation's requirements."
Housing affordability is expected to improve even further for the June quarter.
Editor of Australian Property Investor magazine Eynas Brodie says it's pleasing to see the door opening wider for people who want to enter the housing market but haven't been able to in recent times.