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Housing most affordable in 30 years

Natalie HordovWestern Suburbs Weekly

PERTH housing is the most affordable it has been in over 30 years according to the latest HIA Affordability Report.

Ongoing dwelling price declines, earnings growth and the final interest rate cut last year pushed affordability up 2.1 per cent in the December quarter 2019.

Buyers now require just 0.8 average incomes to service a mortgage, more affordable than at any point in HIA data going back to 1996.

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Perth is also 63 per cent more affordable than its 20 year average.

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WA has the most affordable regional market, with less than 0.7 incomes required to service a mortgage.

Interest rates cuts have seen a typical Perth mortgage drop to $1938 per month from $1968 in the September quarter and $2181 a year ago, taking up 23.3 per cent of earnings.

This compares to $4147 in Sydney, which is up from $3962 three months ago and needs 50.7 per cent of earnings to service a repayment, and Melbourne at $3319 per month, up from $3192 and requiring 42.2 per cent of earnings.

In regional WA a typical mortgage repayment is $1216 per month, down from $1246 in the previous quarter and $1438 the same time in 2018, requiring 20 per cent of earnings.

Perth retained its title of the most affordable capital city in Australia, with affordability decreasing in Sydney, Melbourne, Hobart, Canberra and Brisbane.

It increased slightly in Adelaide, and Darwin was just behind Perth with 2 per cent improvement during the quarter.

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Nationally affordability decreased, affected by the bounce-back in dwelling prices in Sydney and Melbourne, ending nine quarters of improvement since mid-2017.

Prices increase slightly in January

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