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Australian real estate is the most affordable since 2016, thanks to a combination of price drops and low interest rates.

The finding came from new research commissioned by CoreLogic and ANZ, which was one of the major banks that chose not to pass on the full 0.25 percentage point rate cut decided by the Reserve Bank on Tuesday.

For some Australian cities, it is the cheapest time to buy in decades. Darwin and Perth buyers, for example, are enjoying the most affordable conditions since September 2004.

For Hobart house hunters, it has literally never been a better time to buy – the current conditions are historically unmatched.

“For the first time, we’re seeing suburbs and towns in every state where it is more affordable to buy than rent,” said ANZ home owners lead Kate Gibson.

“This shift, combined with record low interest rates, is driving more first home buyers to look at entering the market. For the first time in fifteen years most buyers are not chasing a rising market.”