Ensure you never miss an issue of the
real estate business bulletin
Housing affordability improves

Housing affordability improves

by Simon Parker 0 comments

Staff Reporter

Housing affordability continues to improve, encouraging first home buyers back into the market.

According to the latest Adelaide Bank/REIA Housing Affordability Report, the proportion of income required to meet loan repayments dropped 0.1 per cent across Australia to 31.8 per cent.

This is the fifth consecutive month of improvement in housing affordability.

New South Wales was the best performer, with the proportion of income required to meet loan repayments dropping 0.9 percentage points.

Meanwhile, the ACT was the worst performer, with the proportion of income required increasing by 1.7 percentage points.

Adelaide Bank’s general manager Damien Percy said the improvement in housing affordability would no doubt encourage first home buyers into the market.

“The number of first home buyers has continued to rise and rental affordability has also stabilised,” Mr Percy said. “Compared to the September quarter last year, we have now observed a 14.3 per cent increase in new finance commitments to first home buyers, bringing this segment back up to almost 20 per cent of all residential homebuyers.

“This is still quite a long way off the 30.8 per cent level for first home buyers recorded in the June quarter of 2009 but there are several factors that seem to be driving this growth.  

“Median weekly family income has also increased from the September quarter in 2011 by around $250 per month. 

“The average loan size of new lending commitments is now at $320,542 and average monthly loan repayments are up slightly, to $2,176 or $544 per week.

“The current low interest rate environment is encouraging many people to re-visit and weigh up the ‘buy versus rent’ equation.   

“Certainly, there are many desirable parts of Australia where it is now cheaper to buy and make loan repayments than it is to rent, and around a fifth of all homebuyers are first home owners who have decided to come down on the ‘buy’ side of the equation.”

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Housing affordability improves
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
An industry where the resilient succeeds

Tim Heavyside believes that a strong support team and good foundations are paramount to success in the real estate industry, and with regu...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?