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According to the EIS, although the mortgage rate is decreased, housing affordability is still low. As the interest rate, the higher the amount of taxes by local government, provincial and federal governments and other expenses of a new home has an extreme pressure on the person who buys a house for the first time.

HIA believes that housing affordability is very low. reached the lowest level in 24 years. They do not see much hope for improvement, even if there is a drop in mortgage rates, which is very unlikely. The home loan repayment fluctuates around $ 2,830 per month.

The HIA-CBA First Home Buyers Affordability Index rose 0.3 percent during the quarter to June 2008. Despite this figure, the remaining 6% lower than the previous year. Higher borrowing rates independently by the banks has done nothing to improve the situation.

The slight increase in the rate of accessibility simply means that the consumer can now invest in a small house first. Ben Phillips, who is a member of the association believes that the average income of the Australian people six years ago was much more than what was required, almost double.

Today, the scenario is such that almost thirty percent of family income goes to mortgage payments amounting to nearly $ 2,830 per month on average. Financial institutions and small independent banks has raised rates by the Reserve Bank's interest in the June quarter of 2008.The increase in the loan average home by nearly one percent.

The median price of homes has increased first oven Dollar million twenty four thousand and six Hundred for the three months March to $ 425,000 for the quarter June Dale Harley chief economist of the EIS said that even if the mortgage rate is slightly decreased in the second quarter of the year, it will not greatly affect the rate of accessibility. Well, it can ease strain a bit.

The interest rate, the higher the amount of taxes by local government, provincial and federal governments and other expenses of a new house puts extreme pressure on the person who buys a house for the first time. Another threat that concerns HIA is the shortage of skills. It will also ask to be a big problem in housing affordability.

According to the report, it was not easy to afford a house in Melbourne, Adelaide regional Queensland, Hobart, Sydney and regional South Australia during the quarter June It will only be by the year 2009 -2010 the year we can expect to see an improvement in housing affordability.

The housing can be affordable if interest rates are low and the supply becomes too better. To increase the supply of homes, home construction should become easier. All this will add to the affordable housing within the reach of first home buyers a time.

It is not easy to build a house. Land costs, stamp duties, government and various fees provided by the state and federal government is high all up and raises the cost of building the house. The government at all levels must cooperate to reduce costs. They must also reduce bureaucracy in order to expedite approvals.