Powered by MOMENTUM MEDIA
research
1 minute read

Housing affordability shows signs of improvement

Housing affordability shows signs of improvement

by webmaster | February 22, 2012 | 1 minute read

Housing affordability and serviceability will continue to improve throughout 2012, Fitch Ratings' managing director and head of APAC structured finance Ben McCarthy has claimed.

by webmaster
February 22, 2012

According to Mr McCarthy, last year's interest rate falls have definitely helped improve both affordability and mortgage serviceability.

"We are starting to see arrears trend downwards thanks the latest interest rate falls," he told Smart Property Investment's sister publication The Adviser.

"We are also starting to see housing affordability improve as a result of the interest rate cuts."

But the interest rate cuts are not the only factor at play when it comes to housing affordability, Mr McCarthy said.

Advertisement
Advertisement

"The Global Financial Crisis had a huge impact on consumer confidence, which has ultimately forced house prices to fall.

"Property prices in Australia's holiday destinations have fallen significantly. There is stress in the market and, as such, people aren't looking for a second home."

Mr McCarthy is one of the key note speakers at this year's Australian Mortgage Conference, which will be held at the Sofitel Wentworth Sydney on Thursday 23 February.

Housing affordability shows signs of improvement
default
spi logo

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.