Housing is as affordable as in the 1980’s says ANZ. Prices falling at an accelerated rate, says RP Data. Potential

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ANZ Head of Property Research, Paul Braddock, informed a UDIA audience in Perth that the purchasing power today of the average home is the same as in the mid 80’s, including mortgage payments. He said increasing incomes and a fall in interest rates have basically been capitalised in housing prices, and this purchasing power will just increase faster than property prices. At the same time RP Data says Australian housing prices are actually falling at an accelerating rate. Prices dropped 0.4% in September and 0.5% in October. Nationally for 10 months to October:
Brisbane Down 7.5%
Melbourne Down 5.8%
Adelaide Down 4.4%
Perth Down 3.8%
Sydney Down 1.4%
Canberra Down 0.9%
Darwin Down 0.6%

Paul Braddick forecasts a bottoming out early 2012 then a strong recovery due to shortage of stock.