The Commonwealth Bank of Australia (ASX: CBA) share price is fairly low compared to where it has been for most of the past year.
I always like to pick up shares at good value so it's worth considering if the Commonwealth Bank share price is good value at this point.
Commonwealth Bank's success is heavily aligned with Australia's property market. Commonwealth Bank earns more of its profit from the property market compared to some of its peers like Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ).
Property prices have been falling in capital cities in recent months, particularly in Sydney. However, it appears as though prices have been flat over the last few weeks, so it remains to be seen if the declines will continue.
The Reserve Bank of Australia doesn't seem to be in rush to return interest rates to normal levels. The Australian Prudential Regulation Authority (APRA) is planning on removing the 10% annual growth limit on investment home loans. These two things could support the property market.
There are reports that banks are now softening their stance of investment loans and reducing rates, which could give the property market further support.
I like that Commonwealth Bank has a variety of segments to its business that earns good money for the banking giant. Commsec and Colonial First State would both be large businesses in their own right.
I also like that Commonwealth Bank management seem to have the desire to increase the bank's dividend when possible. The current grossed-up dividend yield of 8% is very attractive compared to the current interest rates offered on its banking products.
Foolish takeaway
Ultimately, Commonwealth Bank could be a solid investment as long as the Australian economy or the housing market don't fall. I don't believe it will be an amazing performer at the current price over the next few years, but the income alone could be attractive to a lot of investors.
