Powered by MOMENTUM MEDIA
subscribe to our newsletter

Housing affordability back to 2013 levels

Lower loan sizes and moderate increases in income have been good news for Australia’s housing affordability.

According to the latest Housing Affordability Report by Adelaide Bank and The Real Estate Institute of Australia, the proportion of income required to meet average home loan repayments fell by 2.4 percentage points to 30.0 per cent for the March 2016 quarter.

The report showed that all states and territories saw improvements in housing affordability during the quarter except the Northern Territory, which experienced a 0.7 percentage point increase to 21.9 per cent in the amount of family income needed to meet mortgage repayments.

New South Wales saw the greatest improvement in housing affordability, with the proportion of income needed to meet loan repayments falling 4.0 percentage points to 35.4 per cent.

Victoria experienced a drop of 1.9 percentage points to 32.7 per cent, while Queensland witnessed a decline of 1.5 points to 26.1 per cent, and South Australia saw a 1.2 per cent decrease to 25.9 per cent.

Advertisement
Advertisement

The proportion of income required to meet loan repayments fell by 0.8 percentage points to 23.2 per cent in Western Australia and by 0.7 points to 23.0 per cent in Tasmania.

The ACT remains the most affordable, with the income amount needed to meet loan repayments down 0.6 percentage points to 19.3 per cent.

Meanwhile, the total number of loans (excluding refinancing) dropped by 14.5 per cent over the quarter to 99,663, while the average loan size for first home buyers decreased by 6.0 per cent to $368,863.

[Related: Mortgage arrears continue upward trend]

Housing affordability back to 2013 levels

PROMOTED CONTENT


>According to the latest Housing Affordability Report by Adelaide Bank and The Real Estate Institute of Australia, the proportion of income required to meet average home loan repayments fell by 2.4 percentage points to 30.0 per cent for the March 2016 quarter.

The report showed that all states and territories saw improvements in housing affordability during the quarter except the Northern Territory, which experienced a 0.7 percentage point increase to 21.9 per cent in the amount of family income needed to meet mortgage repayments.

New South Wales saw the greatest improvement in housing affordability, with the proportion of income needed to meet loan repayments falling 4.0 percentage points to 35.4 per cent.

Victoria experienced a drop of 1.9 percentage points to 32.7 per cent, while Queensland witnessed a decline of 1.5 points to 26.1 per cent, and South Australia saw a 1.2 per cent decrease to 25.9 per cent.

The proportion of income required to meet loan repayments fell by 0.8 percentage points to 23.2 per cent in Western Australia and by 0.7 points to 23.0 per cent in Tasmania.

The ACT remains the most affordable, with the income amount needed to meet loan repayments down 0.6 percentage points to 19.3 per cent.

Meanwhile, the total number of loans (excluding refinancing) dropped by 14.5 per cent over the quarter to 99,663, while the average loan size for first home buyers decreased by 6.0 per cent to $368,863.

[Related: Mortgage arrears continue upward trend]

Housing affordability back to 2013 levels
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Latest News

The digital property settlements platform has appointed independent company directors to its board as it expects to begin trading on the ASX...

A report has called for a royal commission and the Reserve Bank to address soaring house prices, warning that the Australian property market...

Auction volumes were lower last week amid ongoing lockdown restrictions in Melbourne and a long weekend in several states and territories, a...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.