Today’s ABS release Housing Occupancy and Costs 2011-12 have shown the unreliability of housing affordability measures that rely on interest rates, according to affordable housing advocates.
‘Today’s figures from the ABS show the precarious situation for mortgage holders on Australia. Despite interest rates being at historical lows, affordability is no better than it was in 1996. In July 1996 interest rates as set by the RBA were 7.5%, in July 2013 they were 2.75%. And yet the ABS figures tell us that Australian’s are paying no less now than they were then.’
‘Interest rates are at historical lows, and at the first sign of economic stability they will rise. A slight increase in rates will have a big impact on affordability, and the Government needs to take action now to prepare for that.’
‘Because of higher prices, today’s first home buyers are paying much higher mortgage repayments than 15 years ago. Average first home loans have more than tripled since 1996. Average weekly earnings have only doubled in that time. This is putting massive pressure on first home buyers.
‘The ABS has also released figures today showing that, in seasonably adjusted terms, housing construction has actually slowed. We have a massive shortage of housing and residential construction has shrunk.
‘Low interest rates are simply pushing up prices without helping new construction. This is a recipe for disaster, and Kevin Rudd and Tony Abbott need to take responsibility.’
‘Neither leader has offered a plan for fixing the housing crisis, which is worsening. In failing to do so, they are showing contempt for the Australian people. One of them will be forced to react to a deepening housing crisis as Prime Minister after the election, and voters deserve to know how they will respond.’
Australians for Affordable Housing is a coalition of national housing, welfare and community sector organisations working together to highlight the problem of housing affordability in Australia. For more information visit www.housingstressed.org.au
‘Today’s figures from the ABS show the precarious situation for mortgage holders on Australia. Despite interest rates being at historical lows, affordability is no better than it was in 1996. In July 1996 interest rates as set by the RBA were 7.5%, in July 2013 they were 2.75%. And yet the ABS figures tell us that Australian’s are paying no less now than they were then.’
LOL, these guys used to whinge about how affordability today is much worse than it was the past.
Then the ABS release some data showing affordability today is just the same as it was two decades ago.
And they're still not happy... they just changed the whinge to something else.
Here's a couple of good charts from the ABS release which pour a lot of cold water all over the bears' claims...
‘Today’s figures from the ABS show the precarious situation for mortgage holders on Australia. Despite interest rates being at historical lows, affordability is no better than it was in 1996. In July 1996 interest rates as set by the RBA were 7.5%, in July 2013 they were 2.75%. And yet the ABS figures tell us that Australian’s are paying no less now than they were then.’
The quoted ABS report provides figures up to 2011/12. It says nothing about housing costs "in July 2013". The author is either dumb, cannot read, or is being deliberately deceptive.
The ABS Housing occupancy and costs 2011/12 report does tell us some interesting stuff:
13/12/2011 The past 13 years has seen a significant decline in home ownership. Now 35.2% of Australians aged 14 and over own their home outright or live in a family owned home (down from 45.5% in June 1998), according to the recently released Roy Morgan State of the Nation Report 9.
Mmmmmm outright ownership has dropped to 30.85%. That is not a good thing. 47% at its peak as I recall.
Here we go again with your false and misleading statements.
* When was outright ownership 47% Pauk? * What was the total owner-occupied housing proportion at the same time? * What has the outright ownership rate done since then to now? * Same as above for total owner-occupied housing proportion?
For Aussie property bears, "denial", is not just a long river in North Africa.....
Here we go again with your false and misleading statements.
* When was outright ownership 47% Pauk? * What was the total owner-occupied housing proportion at the same time? * What has the outright ownership rate done since then to now? * Same as above for total owner-occupied housing proportion?
It's funny you know, I went and looked up the 1995/96 stats
And in 1995/96 the Housing costs as a proportion of income on page 14, lists it at 19% and it doesn't specify first home buyers, it's just houses with mortgages.
Also, in the ABS explanatory notes; which like EULA's, no one reads, it states
"In 2007-08 the ABS revised its standards for household income statistics following the adoption of new international standards in 2004 and review of aspects of the collection and dissemination of income data. The income estimates from 2007-08 onwards apply the new income standards, and are not directly comparable with estimates for previous cycles."
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It's funny you know, I went and looked up the 1995/96 stats
And in 1995/96 the Housing costs as a proportion of income on page 14, lists it at 19% and it doesn't specify first home buyers, it's just houses with mortgages.
Also, in the ABS explanatory notes; which like EULA's, no one reads, it states
"In 2007-08 the ABS revised its standards for household income statistics following the adoption of new international standards in 2004 and review of aspects of the collection and dissemination of income data. The income estimates from 2007-08 onwards apply the new income standards, and are not directly comparable with estimates for previous cycles."
The number of respondents surveyed in 1995/96 was 6,963 and in 2011/12 was 14,569
The percentages are only accurate for these groups, the ABS extrapolate out, with fair accuracy but it's not 100%Gah, running out of edit time.
I apologise, I've found the First home buyer breakdown, your numbers are correct.
But only for the respondent sample, the extrapolation could still be far wrong.
Income measures
8 The ABS has revised its standards for household income statistics following the adoption of new international standards in 2004 and review of aspects of the collection and dissemination of income data. The 2007-08 income estimates in this publication reflect the changes in treatment of individual income components arising from the review.
Employment income now includes all payments received by individuals as a result of their current or former involvement in paid employment. In addition to the regular and recurring cash receipts previously included, the new income measures also include non-cash benefits, bonuses, termination payments and payments for irregular overtime Interest paid on money borrowed to purchase shares or units in trusts is now netted off income earned from these sources when deriving income estimates Income earned as a silent partner in a partnership and some private trust income is now classified to investment income rather than unincorporated business income. The questions developed to effect this change also improved the reporting of income from these sources Lump sum workers' compensation receipts are now included A wider range of data on financial support received from family members resident outside the household is now included. In addition to regular payments previously collected, financial support has been extended to include other forms of financial support , including goods and services received which were purchased by others e.g. rent, education, food, clothing, car registration and utilities. Capital transfers, such as the purchase of property or cars, were excluded.
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