In the March quarter of 2008 interest rates increased by 0.8 of a percentage point on account of two official RBA rate rises and several retail rate increases.
In Melbourne, the March quarter saw average monthly home loan repayments increase by 5.5 per cent, or $148, from $2,691 to $2,839 per month. A median first home buyer loan in Melbourne is now $345,000.
In Regional Victoria, monthly repayments were up by 3 per cent or $58 from $1,961 to $2,019 in Regional Victoria. A median first home buyer loan in Regional Victoria is now $245,000.
Housing affordability in Victoria is at a near record low, and the lowest that it has been since 1989, when interest rates hit 17 per cent.
HIA’s Acting Executive Director, Victoria, Mr Robert Harding said today’s report highlighted the importance of the Federal Government’s housing programs and the need for urgent planning and taxation reform across all levels of government. Mr Harding said that without comprehensive reform affordability was unlikely to improve.
“The cost of planning and development charges is worthy of urgent attention as are chronic skill shortages which are adding to price and supply pressures. This should be the number one priority for Infrastructure Australia. Investment in infrastructure should be directed at where 80 per cent of Australians live, urban Australia,” said Robert Harding.