Property values have increase for capital cities in the past several months. Despite this housing affordability is improving, according to the Housing Industry Association (HIA).
The high property values are offset by low interest rates, which keep prices at bay. According to the report, all the seven capital cities have shown improvements in property price affordability based on their index, with Hobart leading the charge with 10.1%, followed by Canberra (6.3%), Perth (3.2%), Melbourne (2.6%), Adelaide (2.4%) and Brisbane (1.5%). Even Sydney (0.5%) posted improvements in home affordability despite having the most expensive property values. overall, the nation had an increase of 3.2% based on the index in the September 2013 quarter, 15.2% higher than the values of the previous year.
Read more about this on the Your Investment Property website.