Homes are becoming more expensive, with a measure of house-price affordability showing it was harder to pay for a house in the three months to June than it was just a few months earlier.
The Housing Industry Association-Commonwealth Bank First Housing Affordability Index slid more than 5 per cent in the June quarter to 152.5 index points from 161 index points in the March quarter.
The median home price rose to $419,900 in the June quarter, from $386,400 in the March quarter, taking the median monthly mortgage repayment payment to $1983, up from $1843 over the same period. That marks a 7.6 per cent rise.
Over that period, average mortgage rates fell by about 10 basis points, or a tenth of a percentage point, on a typical home loan.
HIA chief economist Harley Dale blamed a rise in demand, ahead of an increase in available supply, for the lower overall affordability.
“The lift in established house prices stands in marked contrast to the predictions of a house price rout,” Dr Dale. “But we have neither boom nor bust conditions.”