Homes become more affordable, but first home owners still can’t buy
Across Australia, housing affordability improved in the first quarter of 2017, but both the number of first home buyers and the size of loans decreased.
First home buyers now make up 13.4 per cent of total owner-occupied housing, according to the Adelaide Bank/REIA Housing Affordability Report.
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Australia-wide, the number of first home buyers saw a decrease from December 2016 to March 2017 from 23,290 to 20,677, while the average loan size also went down from $323,700 to $313,433, according to REIA president Malcolm Gunning.
“Over the quarter, the average loan size to first home buyers increased in South Australia and Tasmania,” Mr Gunning said.
“It will be interesting to see the effects that stamp duty exemptions and concessions announced in Victoria and more recently in NSW have on first home buyers.
“We anticipate that more first home buyers will be enticed to enter the market place. However, it will take time for any response to filter into our data as the changes do not come into effect until 1 July 2017 in either state.”
The report also found that the median family income required to make an average loan repayment decreased to 30.4 per cent, a fall of 1.3 per cent.
The proportion of median family income needed to make rent payments rose over the first quarter of 2017 by 0.1 per cent to 24.6 per cent.
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