Housing affordability remains a problem across Australia, with many first home buyers still priced out of the market despite recent interest rate cuts.The findings was made in the latest snapshot of the local housing market by JP Morgan, which ranks Australia in second place behind Hong Kong for having the worlds highest house price.
Australia's recent slash of its cash rate, mortgage repayments remain high because the average loan is getting bigger and the major banks have not passed on the RBA's rate cut in fall.
As a result, potential home buyers in major capital cities were being put of plunging into the property market.
In some of the major markets , such as NSW and western Australia, over half the people who want to buy can't because they can's afford to.
While first home buyers were put off by high house prices, existing property owners looking to buy were wanting to downsize to smaller properties.