Affordability is growing even as home prices rise

From local schools to kitchen space, there's plenty to keep you preoccupied when searching for your dream home. Then again, at the end of the day, it often comes down to affordability.

After all, what's the point of falling in love with the hardwood floors and big backyard if you don't have the money to make your dream a reality?

Fortunately for buyers looking to buy property in Moil or surrounding suburbs, data from the Housing Industry Association (HIA) and Commonwealth Bank shows that affordability is on the rise in Australia.

"The continuation of record low interest rates, combined with decelerating home price increases and growth in earnings over the quarter saw the HIA-CBA Housing Affordability Index improve to its most favourable level since March 2002," HIA senior economist Shane Garrett said in a 28 May media release.

"The HIA-Commonwealth Bank Housing Affordability Index improved by 2.1 per cent during the first quarter of 2014 and affordability is now 10.8 per cent more favourable than a year ago."

Put simply, home prices may be getting bigger, but low interest rates are making it easier for Australians to borrow money at an affordable price and enter the housing market – great news for borrowers in the Darwin region.