ACT most affordable, NSW the least: REIA
The ACT remains the most affordable state or territory to buy in, while New South Wales remains the least, however first home buyers appear hesitant across the board, according to the Real Estate Institute of Australia (REIA).
REIA president, Peter Bushby, said that the latest Adelaide Bank/REIA Housing Affordability Report recorded an improvement in housing affordability when considering the proportion of income required to meet loan repayments. The amount decreased 1.2% to 29.8%.
Observer Terry Ryder recently noted that his thoughts around first home buyers, particularly with statistics around affordability, is that they’re staying out due to choice. However, one reader commented that this was too simplistic a measure of affordability.
Bushby noted that all states and territories recorded this affordability improvement over the quarter. In Tasmania, the proportion sits at 24.6%, with the greatest drop of 1.6%.
“As we expected, due to the changes in the First Home Owner Grant introduced by the Victorian Government, the number of loans to first home buyers in the state had the biggest quarterly drop across the country,” he said.
“The consequences of the availability of the grant to those only purchasing new dwellings are abundantly clear in NSW and Queensland – the number of loans to first home buyers in these states is 46.7% and 34.5% lower than it was a year ago.”
South Australia and Western Australia saw strong increases in loans, excluding refinancing.
“For renters, it became slightly more affordable to rent in Tasmania, but in the Northern Territory, rental affordability fell further with renters paying well above the national average," said Bushby.