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SA housing affordability remains high

30 Aug 13

Housing affordability continues its cyclical rise across the country, including in South Australia, according to a recent report.

The Housing Industry Australia (HIA) posted results from its HIA-Commonwealth Bank Housing Affordability Index on August 28, which showed that the nationwide index increased by 4.4 per cent to 72.8 in the June 2013 quarter.

This trend was also reflected in each capital city around Australia, with Adelaide reporting one of the highest cyclical rises in affordability.

The South Australian capital had the third highest rise in affordability in the June 2013 quarter, up by 7.7 per cent from the previous quarter.

Brisbane recorded the highest increase with 10.4 per cent, while Melbourne ranked the lowest with only a 2.2 per cent rise.

The regions outside the capitals also marked positive trends in affordability - for example, the rest of South Australia also posted a 7.7 per cent increase to match the rise in Adelaide.

Overall, Adelaide now ranks as the third most affordable housing market among the capitals with a level of 78.7.

Investors looking to take advantage of this seasonal peak in housing affordability may therefore wish to enter the property market now with the help of some solid real estate advice.

For those who are still a little unsure, they may be buoyed by the Australian Bureau of Statistics' (ABS) recent findings regarding housing costs across Australia.

The ABS found that the proportion of income spent on housing remained steady and on a par with previous years, for both private renters and owners with mortgages.

Homeowners with a mortgage spent an average of $432 per week on housing costs, which represented 18 per cent of their average gross weekly income, according to an ABS report released on August 28.

Private renters paid a similar amount on housing, with 20 per cent of their weekly income dedicated to this expense.