Affordability at its best since 2013: Index

Posted on 6/06/2016  
Affordability at its best since 2013: Index

There is mounting evidence that housing affordability is improving nationally. Both affordability indexes published quarterly in Australia confirm that housing affordability is now the best it’s been in several years.

The latest is the Adelaide Bank/REIA Housing Affordability Report, which shows an improvement in housing affordability nationally in the March Quarter.

In terms of the national average situation, it’s the best affordability situation since 2013. This supports the affordability improvements recorded in the quarterly index published earlier by the Housing Industry Association (which found that, in some states, affordability is the best it’s been since 2003).

The Adelaide Bank/REIA report says the proportion of median family income required to meet average loan repayments now stands at 30%, a decrease of 2.4 percentage points compared to the December 2015 Quarter.

The report found that median weekly family income increased 0.5% to $1,652 in the March Quarter - which represents a 2.3% rise when compared to the same quarter of 2015.  

Meanwhile, the average monthly loan repayment was $2,144 – a 7% decrease over the quarter.

Damian Percy, General Manager, Adelaide Bank said:  “When compared to the previous quarter, all states and territories saw improvements in housing affordability except the Northern Territory. 

“The decrease in the national figure to 30% of income is welcome as it’s now on the borderline of what has been traditionally viewed as the measure of 'housing stress'. 

“New South Wales recorded the biggest improvement in affordability with the proportion of income required to meet loan repayments decreasing 4.0 percentage points, to 35.4%. However, NSW still remains the least affordable state for home-buyers.”

 

 

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