Is now the ideal time to buy?

By |
Australian housing affordability has improved slightly over the March quarter, according to Adelaide Bank and the Real Estate Institute of Australia.
Their latest housing affordability report said the proportion of income required to meet loan repayments decreased 0.2 percentage points to 30.6% over the quarter.
REIA president Peter Bushby said compared to a year earlier, housing affordability improved in all states and territories but first home buyers were still lagging.
“Disappointingly, first home buyers were still at very low levels and made up just 12.8% of the owner-occupier market. Despite a small increase from its lowest point ever, this figure remains persistently low compared to the long-run average proportion of 19.8%.”
Victoria continued to lose first home buyers following changes by the state government, with numbers down by 13.3% over the March quarter and 26.5% compared to a year earlier.
Queensland, however, was up by 25% over the past 12 months in first home buyers, the report said.
Overall, ACT remained the most affordable state or territory in which to buy a home with the proportion of income required to meet loan repayments sitting at 19.8%.
New South Wales was the least affordable state or territory in which to buy a home, with the proportion of income required to meet loan repayments 4.0 percentage points above the national average.
But not all are convinced by the latest figures.
Economist Leith van Onselen termed the report “bogus”, and picked out suspected anomalies, such as that house price gains outpaced rental growth, but rental affordability had worsened over the quarter.

“What makes this quarter’s improvement so curious is the fact that it has come despite negative real wages growth, stable mortgage rates, and ongoing solid house price growth,” he said.

Can you afford to buy in this suburb? Find out how much you can borrow

Top Suburbs : tuart hill , thebarton , kawana , menai , north epping

go back

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 and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here