Housing affordability nose-dived at the end of 2009 due to the fatal storm of higher house prices, increased interest rates, and the winding-down of the first home buyers’ boost according to the latest HIA-CBA First Home Buyer Affordability Report.

Melbourne’s housing affordability tanked in the December 2009 quarter dropping by 18.4 per cent, to be 23 per cent lower than a year ago.

Regional Victoria fared only slightly better, dropping 13.9 per cent over the quarter and 19.2 per cent over the year. 

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