New home affordability at 7 year high

A softer property market and record low interest rates continue to make buying a first home the most affordable in years.

The Housing Industry Association (HIA) and Commonwealth Bank First Home Buyer Affordability Index yesterday revealed a 14.6% improvement in housing affordability in the March 2009 quarter.

This improvement was on top of a 40% increase in the December 2008 quarter, bringing first home buyer affordability to its lowest level in seven years.

Average monthly loan repayments fell to $1,831, the report showed, with a further reduction in repayments expected in the June 2009 quarter.

Notwithstanding current economic conditions HIA chief executive Chris Lamont said for many aspiring first home buyers there has never been a better time to buy.