South Australian homebuyers need to spend 27.5% of their weekly family income to meet loan repayments— up by 0.9% over the December quarter, according to the Adelaide Bank/REIA Housing Affordability Report.
The median weekly family income is currently at $1,617 — higher than $1,607 from the previous quarter and the $1,575 recorded in the same period last year.
The report also revealed that 22% of the weekly family income is needed to be able to pay rent payments—up 21.8% and 21.9% from the previous quarter and the past year, respectively.
Despite the rise in weekly spend on housing, SA’s market remains affordable compared to the rest of the country, said Real Estate Institute of South Australia (REISA) President Brett Roenfeldt.
“This is reflective of our median house price having increased over the past 12 months in excess of 4% for Adelaide metro and in excess of 6.2% in regional areas. According to the latest figures, our stock levels are dropping significantly, and that’s putting pressure on house prices because buyers have little to pick and choose from,” Roenfeldt said.
Roenfeldt warned, though, that if housing costs continue to climb while wages remain unchanged, affordability will become more of a problem.
“Once we’ve broken the 30% mark then an average person out there in the marketplace (would be) looking very closely at where your money is going. We’ve got the lowest median price of any capital city in the country, and when you put it in perspective, we still represent extremely good buying in the current environment,” he said.
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