Australian economy shows strength
While the Australian economy remains volatile, there is seemingly some light at the end of the tunnel.
According to a recent PRDnationwide Quarterly Economic and Property Report, gross spending on housing finance was $20.3 billion during the month of February - a $1 billion increase on this time last year.
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In addition, home loan affordability has increased, giving home hunters a reprieve.
“On average, Australian households now need approximately 32.9 per cent of the family income to service their home loan,'' PRDnationwide research director Aaron Maskrey said.
Mr Maskrey went on to say that Australian property conditions are once again luring investors.
Almost 35 per cent of the property market is now investor financed and is expected to increase as rental yields across the nation continue to become more attractive.
“Looking at the macro level property market, the reality is that the rate of decline in values have slowed and could be even stagnant,” Mr Maskrey said.
“Investors could now be tempted back into the property market as the rate of decline in values erodes away, while the equity market remains not only turbulent, but has provided returns inferior to fixed bonds over the past five years."
Mr Maskrey said for the month of February 2012, investor financial commitment increased by $400 million to record $6.9 billion.
