Housing affordability improves across the country

Housing affordability improves across the country

HOUSING affordability has improved across the country according to the September quarter 2019 REIA Housing Affordability Report.

REIA president Adrian Kelly said housing affordability improved in all states and territories, except Tasmania, while rental affordability improved across the nation.

“Although the average loan amount has risen, the increase in family income and the decrease in the interest rates have negated this rise,” he said.

“Similarly, with a small decrease in average rents, the percentage of income to meet these payments has also declined.”

Nationally, the number of first-home buyers increased, with the percentage of first home loans at 29.4 per cent, the highest percentage since 30.3 per cent recorded in December 2011.

In WA housing affordability improved over the quarter with the proportion of income required to meet home loan repayments decreasing to 22.1 per cent, down 0.3 percentage points from the previous quarter and 0.4 percentage points lower than the same time last year.

Only the NT and ACT were more affordable with the proportion of income needed to meet loan repayments at 19.2 per cent and 19.5 per cent respectively.

By comparison, NSW and Vic home owners required 36.2 per cent and 32.2 per cent respectively of their income to meet loan repayment.

The number of first-home buyers in WA increased to 3817 in the September quarter, up 9.9 per cent from the previous quarter and 6.3 percentage points higher than the same time last year.

They made up 37 per cent of the state’s owner occupier market and 12.7 per cent of the national market.

Rental affordability in WA also improved during reporting period with the proportion of family income required to meet the median rent decreasing marginally to 16.3 per cent, down of 0.1 percentage points, but an increase of 0.2 percentage points compared to the year before.

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