The time has come for the government to focus on increasing the supply of available housing, which will have a positive impact for the entire economy. This is according to the Housing Industry Association (HIA), which explained that this is crucial to future prosperity.
“Tinkering with negative gearing and capital gains tax provisions doesn’t represent real reform, but risks damaging confidence towards the housing industry at a crucial juncture in the cycle,” said HIA chief economist Warwick Temby.
He stressed that the government needs to take charge and implement whatever policy reforms are necessary to make it happen. As a direct result, real estate in Carlton and various other parts of the country will start to become more affordable for the masses.
Results of the December quarter Adelaide Bank/REIA Housing Affordability Report showed that supply issues need to be addressed if affordability is to improve. The data revealed that at present, the average family needs to dedicate around 32.4 per cent of its income to paying housing costs.
This represents the worst deterioration since the final three months of 2012. The effects of the interest rate cut so far haven’t been felt as far as many analysts had anticipated.
The report showed that New South Wales, alongside Victoria, now has an average home loan size in excess of $400,000. This makes it more important than ever to find a favourably priced property in Carlton – something an experienced real estate agent can help with.
Forecasts from the HIA indicate that the record dwelling approvals registered last year may represent a peak in the cycle. In fact, the group anticipates that a trough will be experienced in the 2017-18 financial year.