Housing affordability has continued to trend upwards in the September quarter, according to the latest HIA-BA Housing Affordability Index.


The Index increased by 5.3 per cent in the September quarter, finishing up by 15 per cent compared to the same time last year.


"This is the seventh consecutive quarter where we have seen an improvement in the headline affordability index," said HIA Chief Economist, Dr Harley Dale.


The run of consecutive improvements in some regional indices is even longer, in some instances showing affordability  has reached levels not seen since the early 2000s."


The HIA-CBA Housing Affordability Report recorded improved affordability in all seven capital city indices as well as improvements in the six indices tracking the non-metro regions of each state.


“Tentative signs of a recovery in transactions volumes should hopefully gather legs – another interest rate cut in early December would enhance the prospects of this occurring,” added Dr Dale.