It has become more affordable to buy than rent in some parts of Australia as housing affordability has returned to 2016 levels.
The Housing Affordability Report from CoreLogic and ANZ has shown that affordability has been rapidly improving over the last two years.
Sydney and Melbourne remain the least affordable two capital cities in Australia, in that order.
CoreLogic head of research told Property Observer the end of the housing downturn has had to be adjusted.
“The recent drop in property values follows a long period where prices increased at a much faster pace than household incomes," he said.
“We predict that price falls will settle later this year, followed by modest price growth starting from 2020.”
ANZ’ Kate Gibson also spoke to Property Observer and said in some areas it was now more expensive to rent than to buy.
“Buying a home is an aspiration for many Australians and for the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than rent,” she said.
“This shift, combined with record low interest rates, is driving more first home buyers to look at entering the market.”
"For the first time in fifteen years most buyers are not chasing a rising market.”
There are no areas in Melbourne’s CBD ring where it is cheaper to buy than rent but some of the regional areas where it is include Gippsland East, Latrobe Valley, Loddon, Maryborough, Mildura, Moira, Murray River and Shepparton.