House Prices the Best in Three Years
As a result of increasing incomes and decreasing interest rates, Australian homes are now more affordable than they have been in the last three years.
The Housing Affordability Report from the Real Estate Institute of Australia indicated improvement in the affordability of housing in the December quarter with a decrease of 1.4 percentage points in the proportion of income needed to repay loans.
This means that housing affordability in Australia is at its lowest level since December 2009.
President of the Real Estate Institute of Australia, Peter Bushby, said that housing affordability has improved in line with interest rate cuts made by the Reserve Bank of Australia. Bushy suggested that a 2.2% rise of the median family income, combined with a 2.1% fall in mortgage repayments contributed towards the increased affordability of homes.
IN NSW and Queensland, changes to the first-home buyer’s grant caused a decrease in first home buyers entering the market, with a fall of 28.8% in NSW and 10.4% in Queensland over the quarter.
The least affordable state or territory for home ownership is NSW while the Australian Capital Territory remains the most affordable state or territory.