Property Market Information: Affordability rises nationally

By the resi financial blog team, 16 June 2014

National housing affordability rises in Australia

While some areas are posting more favourable results than others, it's clear that housing affordability is on the rise across the board, according to recent figures from the Real Estate Institute of Australia (REIA).

Although slight, housing affordability increased quarter-on-quarter to March, the REIA stated in a June 4 media release.

For those on fixed as well as variable rate loans, the announcement will certainly come as good news.

Australians with mortgages were using 30.6 per cent of their incomes to meet their loan repayments - a 0.2 per cent decrease from the previous quarter's 30.8 per cent figure.

However, there are obvious disparities across the country's various states and territories.

"The [Australian Capital Territory] remained the most affordable state or territory in which to buy a home with the proportion of income required to meet loan repayments sitting at 19.8 per cent while New South Wales  remained the least affordable state or territory in which to buy a home with the proportion of income required to meet loan repayments 4.0 percentage points above the national average," explained Peter Bushby, president of the REIA.

Housing affordability was better in 2014's first quarter compared to the same quarter a year prior.

"Of the states' owner-occupier markets, first home buyers in South Australia made up 18.8 per cent, Western Australia measured 22.1 per cent and first home buyers in Tasmania made up 17.2 per cent," Mr Bushby noted.

Those looking to take out their first home loan are in a good position if they're based in the aforementioned states. By contrast, New South Wales has the lowest rate of affordability, while the number of first time buyers in Victoria dropped year-on-year to March.

However, with interest rates at record lows, there is plenty of potential for home ownership.

Categories: Home Loans