A modest decline in property prices has helped improve housing affordability over the last quarter.
The HIA-Commonwealth Bank Housing Affordability Index rose by 3.6 per cent in the September.
But despite the modest improvement, HIA chief economist Harley Dale said affordability issues were still crippling borrowers across the nation.
In the last 12 months 2010 affordability across the country has fallen by 18.3 per cent.
"The three interest rate rises in the first half of 2010 have really hit home and housing affordability is once again on a clear downward trajectory," Mr Dale said.
"A further rate hike in November will see affordability drop in the December quarter, an outcome obviously not aided by trading banks adding fuel to the mortgage rate fire.
"It now takes an income double the average to affordably service a mortgage on a median priced dwelling in Australia's two largest cities."
Across Australia's capital cities the temporary improvement in housing affordability in the September 2010 quarter was most evident in Adelaide (6.3 per cent), followed by Perth (5.9 per cent), and Brisbane (5.4 per cent).
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