Yahoo Finance NOW is the best time to buy Australian property since 2016
Australian real estate is the most affordable since 2016, thanks to a combination of price drops and low interest rates.
The finding came from new research commissioned by CoreLogic and ANZ, which was one of the major banks that chose not to pass on the full 0.25 percentage point rate cut decided by the Reserve Bank on Tuesday.
For some Australian cities, it is the cheapest time to buy in decades. Darwin and Perth buyers, for example, are enjoying the most affordable conditions since September 2004.
For Hobart house hunters, it has literally never been a better time to buy - the current conditions are historically unmatched.
"For the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than rent," said ANZ home owners lead Kate Gibson.
"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."
Of the capital cities, Sydney is still the least affordable, while Melbourne is not far behind. Darwin came out as the best value for buyers.
For renters, a recent boom in Hobart has seen it crowned the most unaffordable for the first time.
"The recent drop in property values follows a long period where prices increased at a much faster pace than household incomes," said CoreLogic Australia research head Cameron Kusher.
"We predict that price falls will settle later this year, followed by modest price growth starting from 2020."
On Tuesday the Reserve Bank cut interest rates by 25 basis points to a new record low of 1.25 per cent, which was the first movement in cash rates since August 2016. CBA and NAB passed on the full amount to its borrowers, while ANZ and Westpac did not bring their rates down the full 25 basis points.
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