Gen­eral boost in home af­ford­abil­ity

Central Telegraph - - REAL ESTATE | INDUSTRY NEWS -

AF­FORD­ABIL­ITY has im­proved for ren­ters and the num­ber of first-home buy­ers in­creased dur­ing the se­cond quar­ter of 2018, ac­cord­ing to re­search from the Real Es­tate In­sti­tute of Aus­tralia and Ade­laide Bank.

REIA pres­i­dent Mal­colm Gun­ning said the June quar­ter 2018 edi­tion of the Ade­laide Bank/REIA Hous­ing Af­ford­abil­ity Re­port found rental af­ford­abil­ity im­proved in all states and ter­ri­to­ries ex­cept the Aus­tralian Cap­i­tal Ter­ri­tory and the North­ern Ter­ri­tory.

“South Aus­tralia was the only state or ter­ri­tory to show an im­prove­ment in both rental and home pur­chase af­ford­abil­ity,” Mr Gun­ning said.

“How­ever, hous­ing af­ford­abil­ity has de­clined for pur­chases in all other states and ter­ri­to­ries in Aus­tralia.”

Mr Gun­ning said dur­ing the quar­ter, the pro­por­tion of me­dian fam­ily in­come re­quired to meet av­er­age loan re­pay­ments in­creased by 0.9 per­cent­age points to 32.2 per cent, while the pro­por­tion of me­dian fam­ily in­come re­quired to meet rent pay­ments de­creased by

0.7 per­cent­age point to 24.1 per cent.

“Across the coun­try, the num­ber of loans in­creased by 8.3 per cent, with in­creases in all states and ter­ri­to­ries and the largest in New South Wales (12.6 per cent).”

Mr Gun­ning said some in­crease in the num­ber of home loans was ex­pected dur­ing the quar­ter due to tra­di­tional low rates in the first quar­ter.

“How­ever, there has been a de­cline of 3.8 per cent in the num­ber of new loans since the same quar­ter last year,” he said.

“All states and ter­ri­to­ries showed an an­nual de­cline in new loans, ex­cept for Tas­ma­nia where there was a 2.6 per cent in­crease.

The de­cline ranged from 13.6 per cent in Western Aus­tralia to 0.2 per cent in Vic­to­ria.

“De­spite falls in af­ford­abil­ity, the num­ber of first-home buy­ers en­ter­ing the mar­ket in­creased by 20.6 per cent year on year.

“There were large in­creases in New South Wales, Vic­to­ria and Tas­ma­nia but de­clines in Western Aus­tralia, Aus­tralian Cap­i­tal Ter­ri­tory and Queens­land.

“State-based in­cen­tives ap­pear to be work­ing, with the num­ber of loans to first-home buy­ers in NSW in­creas­ing 11.5 per cent over the quar­ter and 68.8 per cent com­pared to the June quar­ter 2017, while in Vic­to­ria the num­ber of loans to first-home buy­ers in­creased to 10.3 per cent over the quar­ter and 35.5 per cent com­pared to the June quar­ter 2017.”

mon­key­busi­nes­sim­ages

FOOT IN DOOR: Rental and first-home af­ford­abil­ity has im­proved in nu­mer­ous re­gions.Photo:

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