Housing affordability increased nationwide during September quarter

By the resi financial blog team, 05 December 2013

REIA announcement 2013 on housing affordability

The latest release from the Real Estate Institute of Australia (REIA) has highlighted that the Australian Capital Territory was the most affordable region for property during the September quarter.

This could highlight a great area to investigate for anyone interested in taking out a home loan and purchasing their very own slice of Australian real estate, or simply expand their investment portfolio with an investment loan.

The latest Adelaide Bank/REIA Housing Affordability Report has illustrated an improvement nationwide. Results showed the proportion of income needed to meet home loan repayments dropped by 1.2 percentage points over the quarter and now rests at 29.8 per cent.

REIA President Peter Bushby said Tasmania saw the largest change in affordability over the period, dropping 1.6 percentage points to reach an income proportion of 24.6 per cent.

However, Mr Bushby did comment on a decrease in the number of first home buyers in the nation overall. First time buyers made up just 13.6 per cent of the owner-occupier market over the last quarter, compared to 14.6 per cent during the June quarter.

This is one of the lowest figures since the Australian Bureau of Statistics began collecting data on first home buyer activity.

"As we expected, due to the changes in the First Home Owner Grant introduced by the Victorian government, the number of loans to first home buyers in the state had the biggest quarterly drop across the country," said Mr Bushby in a December 4 statement.

Mr Bushby went on to say the recent changes to New South Wales and Queensland's First Home Owners Grant - making it applicable only to new home building - has had a detrimental effect on first home buyer rates, reducing by 46.7 per cent and 34.5 per cent since last year, respectively.

On top of these fantastic market conditions and the low cash rate we have been able to reduce our Flexi Options 2 year fixed rate to 4.74%pa (5.24%pa comparison rate). Find out about the all of the fantastic features of this home loan here.

Categories: Home Loans, Personal Finance