Housing affordability improves

Housing affordability improves

Posted on Thursday, September 05 2013 at 12:06 PM

The proportion of family income required to meet loan repayments has dropped by 1.2 per cent – the best since 2003, according to a recent report.

The Adelaide Bank/REIA Housing Affordability Report
showed 28.7 per cent of household income was required to meet loan repayments
in the June quarter of 2013. This is the lowest recorded drop since the June
quarter of 2003.

All states and territories,
apart from the Northern Territory, recorded an improvement in housing
affordability with Queensland showing the largest improvement dropping by 1.9
per cent to 26 per cent.

The data showed New South
Wales was still the least affordable location to buy or rent with more than
34.3 per cent of household income required to meet loan repayments.

The ACT was the most affordable
at 16.4 per cent required for loan repayments and 14.5 per cent required for

Despite the improvements in
affordability as well as seven interest rate cuts since November 2011, the
report also highlighted that the number of first homebuyers made up just 14.6
per cent of the owner-occupier market – a figure which normally averaged 20 per

In addition, the total
number of loans increased by 21 per cent over the June quarter.

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