RE­PORT SEES FIRST-HOME BUYERS AC­TIVE IN SE­COND QUAR­TER

Ellenbrook Advocate - - SUBURBAN SNAPSHOT -

DE­SPITE de­clin­ing hous­ing af­ford­abil­ity, first-home buyers were more ac­tive in the se­cond quar­ter of 2017, ac­cord­ing to the lat­est Ade­laide Bank/REIA Hous­ing Af­ford­abil­ity Re­port.

Dur­ing that pe­riod the re­port found the pro­por­tion of me­dian fam­ily in­come re­quired to meet aver­age loan re­pay­ments in­creased by 0.2 per­cent­age points to 31.4 per cent across Australia.

REIA pres­i­dent Mal­colm Gun­ning said at the same time, the to­tal num­ber of loans and the num­ber of loans to first-home buyers in­creased by 9.6 per cent and 14.0 per cent re­spec­tively, with in­creases in all states and ter­ri­to­ries ex­cept Tas­ma­nia.

“First-home buyers now make up 14.3 per cent of to­tal owner-oc­cu­pied hous­ing. This rate has been drop­ping steadily over the past five years but seems to have sta­bilised over the past 18 months,” he said.

The re­port had mixed news for WA home­buy­ers and home­own­ers.

Hous­ing af­ford­abil­ity de­clined over the quar­ter, with the pro­por­tion of in­come re­quired to meet loan re­pay­ments in­creas­ing to 0.2 per­cent­age points to 23.6 per cent.

First-home buyers were not de­terred by the de­crease in af­ford­abil­ity.

The re­port found the num­ber of first-home buyers in WA in­creased to 4128 in the June quar­ter, an in­crease of 16 per cent over the quar­ter and 3.8 per cent higher than the same time last year.

Of all Aus­tralian first-home buyers over the quar­ter, 17.5 per cent were from WA, while the pro­por­tion of first-home buyers in the state’s owner-oc­cu­pier mar­ket was 33.7 per cent.

Over the quar­ter, the pro­por­tion of me­dian fam­ily in­come re­quired to meet rent pay­ments re­duced by 0.6 per­cent­age points to 24.3 per cent.

The re­port also had good news for ten­ants, with rental af­ford­abil­ity gen­er­ally im­prov­ing in the June quar­ter. The pro­por­tion of me­dian fam­ily in­come re­quired to meet rent pay­ments re­duced by 0.6 per­cent­age points to 24.3 per cent.

Mr Gun­ning said this im­prove­ment was recorded across all states and ter­ri­to­ries ex­cept in Tas­ma­nia and the ACT.

“His­tor­i­cally, rental af­ford­abil­ity de­clined markedly from the June quar­ter 2007, reach­ing its low­est point in the March quar­ter 2010,” he said.

“Since then rental af­ford­abil­ity has been show­ing a trend im­prove­ment, re­flect­ing the pick up in in­vest­ment in hous­ing from the end of 2011.”

Rental af­ford­abil­ity in WA rose dur­ing the June quar­ter, with the pro­por­tion of fam­ily in­come re­quired to meet the me­dian rent drop­ping to 18.1 per cent, a drop of 0.5 per­cent­age points over the quar­ter and a de­crease of 1.6 per­cent­age points com­pared to the year be­fore.

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