Saturday, January 25 2014
Australian houses are still relatively affordable, even though prices have grown faster than those in other major economies, says credit ratings agency Fitch. The Fitch Global and Housing Outlook Report says that in 2014 Australian prices are forecast to outstrip even countries recovering from the GFC. But Australian houses continue to be relatively affordable, thanks to low interest rates and high incomes with only modest employment declines. Fitch says Australian house prices have more than tripled since 1997. Even though prices fell 4% between 2011 and mid-2013, they stayed above those of the UK, our nearest rival. The Sydney Morning Herald reported that house prices compared to per capita GDP are the world's second most favourable.