Housing affordability improved slightly towards the end of last year, according to recently released research, but some states fared better than others.
According to the Housing Affordability Report from the REIA and Deposit Power, affordability improved during the December quarter of 2011, with the proportion of income required to meet loan repayments decreasing by 0.7% to hit 32.9%.
However, on a state-by-state basis, the figures tell an interesting story. According to the report, Victoria saw the biggest improvement in housing affordability, with the proportion of income required to meet loan repayments decreasing by 2.5% to hit 33.1%. Queensland, WA and Tasmania also saw their home affordability levels improve, said the report.
New South Wales, South Australia, NT and ACT, however, all saw their affordability levels drop, with NSW and NT recording the largest quarterly increases in the proportion of income required to meet loan repayments (0.8%).
The results make NSW the least affordable state or territory for homebuyers, with its income to loan repayment proportion hitting 37.9% – 5% above the nationwide average.
At the other end of the scale ACT was the most affordable state or territory for homebuyers, according to the report, with its proportion of income to loan repayment score of 18.6% coming in at 14.3% below the national average.
Source: REIA-Deposit Power Housing Affordability Report
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