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New report shows housing affordability has improved across Australia
Housing affordability has improved across every state and territory in Australia, according to the September quarter edition of the Adelaide Bank/REIA Housing Affordability Report.
The report found the proportion of median family income required to meet average loan repayments had decreased by 1.2 percentage points to 30.3 percent over the quarter.
It also found there was a 22.8 percent increase in first home buyer activity over the quarter, which was 32.6 percent higher than the same time last year.
Real Estate Institute of Australia (REIA) President Malcolm Gunning said first home buyers now made up 24.5 percent of the total owner occupied national housing market (excluding refinancing).
“This is the highest rate since September 2013 after dropping steadily over the past five years,” Mr Gunning said.
Australian rental market
Mr Gunning said the Housing Affordability Report showed varied results across the states and territories.
“Over the quarter, the proportion of median family income required to meet rent payments increased by 0.3 percentage points to 24.6 percent across the country, with rental affordability improving in Queensland, South Australia, Western Australia and the Northern Territory.
“It remained steady in Victoria, but declined in New South Wales, Tasmania and the Australian Capital Territory,” Mr Gunning said.
Western Australia’s results
Housing affordability in Western Australia improved in the September quarter, with the proportion of income required to meet loan repayments decreasing to 22.4 percent.
This figure represents a decrease of 1.2 percentage points over the quarter and 1.4 percentage points compared to the September quarter 2016.
WA first home buyers
The number of first home buyers in Western Australia increased to 4,432 in the September quarter, an increase of 7.4 percent over the quarter and an increase of 17.9 percent compared to the same time last year.
Of all Australian first home buyers over the quarter, 15.3 percent were from Western Australia, while the proportion of first home buyers in the state’s owner-occupier market was 36.2 percent.
WA rental market
Rental affordability in Western Australia also improved during the September quarter, with the proportion of family income required to meet the median rent decreasing to 17.4 percent.
This represents a decrease of 0.7 percentage points over the quarter and 1.8 percentage points compared to the same time in 2016.
For more information about the results of the Adelaide Bank/REIA Housing Affordability Report, read the official REIA media release.
REIWA – December 2017