Housing affordability across Australia generally improved in the first three months of 2018 despite higher costs in Victoria, South Australia, and ACT, according to joint research by Adelaide Bank and the Real Estate Institute of Australia.
During that period, the percentage of median family income required to meet average loan repayments decreased by 0.3 points to 31.3%. Meanwhile, rental affordability dropped in all states, except for Western Australia and the Northern Territory, as the percentage of median family income required to meet rent payments inched up 0.1 percent to 24.8%.
Western Australia and the Northern Territory were the only states or territories to show improvements in both rental and home purchase affordability.
The number of loans also decreased across the country by 16.0%, with drops in all states and territories, including the largest decrease of 17.9% in New South Wales and Victoria.
“Whilst some decline in the number of loans for this period, which includes the summer holiday break, can be expected, the reduction reflects a changing sentiment in the market,” REIA president Malcolm Gunning said.
“In Sydney and Melbourne – the two cities which have had the largest price increases over the past few years – the drop in loans is attributable to APRA restrictions on investment loans and more stringent home lending criteria,” he added. “Since the last edition of this report the east coast residential property market has moved relatively quickly from a seller’s to a buyer’s market. “
National dwelling values lowest level since 2012
Suburb profile report for Perth WA (6000)
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus an appointment is free.
We value your privacy and treat all your information seriously - you can check out