Housing getting more affordable
While housing affordability is on the rise, renting is getting dearer.
The Adelaide Bank/REIA Housing Affordability Report has revealed that affordability improved across the nation in the first quarter of 2018. The proportion of median family income required to meet average home loan repayments fell by 0.3% over the quarter to 31.3%.
Affordability fell in Victoria, South Australia and the ACT, but rose in all other states and territories.
However, rental affordability fell in all states and territories except Western Australia and the Northern Territory. The proportion of median family income needed to meet rent repayments rose by 0.1% to 24.8%. Western Australia and the Northern Territory were the only parts of the country that saw both housing purchase and rental affordability improve.
The number of home loans also fall across the country, down 16% for the quarter. The largest fall was in New South Wales, which saw the number of loans decline by 17.9%.
"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. 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," REIA president Malcolm Gunning said.
Gunning said the east coast property market had moved "relatively quickly from a seller's to a buyer's market".
"The March quarter showed an overall decline in first home purchasers entering the market, with the Northern Territory experiencing the highest decline of 21%. However, the number of first home buyers is 28% higher than in the March quarter 2017 and represents 26.3% of the total, excluding refinancing."