The nation’s housing affordability crisis appears to have eased, according to new data.
The REIA Deposit Power Housing Affordability Report for the March 2011 quarter revealed a minor improvement of 1.1 percentage points in the level of housing affordability.
However, while this slight improvement is good news, Real Estate Institute of Australia president David Airey said there is little to get excited about.
“What needs to be highlighted is that the reduction in the portion of family income required to meet loan repayments is explained by a decline in the average monthly loan repayment of 1.9 per cent and an increase of 1.2 per cent in the median family income over the March quarter,” he said.
Over the year, the level of affordability in Australia declined with the proportion of income to meet home loan repayments increasing 1.6 percentage points.
New South Wales remained the least affordable state or territory in which to own a home, with the proportion of income required to meet loan repayments falling to 37.2 per cent, however it still remains 3 percentage points above the national average.
“The Australian Capital Territory has now been the most affordable state or territory in which to own a home for over five years and New South Wales has held its position as least affordable for more than fifteen years,” Mr Airey said.