Housing affordability on par with early 2000s levels
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Housing affordability on par with early 2000s levels

By Sasha Karen
Housing affordability, mortgage stress, property market, property selling

A new report shows that housing affordability slightly eased Australia-wide over the September quarter, lessening the impact ever so slightly on mortgage stress.

The Adelaide Bank/REIA Housing Affordability Report shows that over the September quarter, the nationwide percentage fell to 30.3 per cent, a decrease of 1.2 per cent over the quarter and 0.6 per cent compared to the September quarter last year.

“Housing affordability has improved across the country in all states and territories, whereas rental affordability has improved in some states and territories but declined in others during the third quarter of 2017,” said Malcolm Gunning, president of the Real Estate Institute of Australia.

Darren Kasehagen, head of business development at Adelaide Bank, said that housing affordability had improved so much that it “is approaching levels last seen consistently in the early 2000s”.

Total non-refinancing loans saw an rise of 4.2 per cent over the quarter and 12.5 per cent compared to last September quarter to 118,112, while the average loan size fell by 1.5 per cent over the quarter and rose by 1.5 per cent compared to this quarter last year to $380,915.

Rental affordability is also on its way down, falling to a required percentage of 24.6 per cent of income, which is a rise of 0.3 per cent over the quarter and 0.4 for the September quarter last year.

The report also breaks down how each state and territory is handling housing affordability and rental affordability:

New South Wales

  • Housing affordability improved – income proportion percentage at 36.1 per cent, fell 1.9 per cent for quarter, fell 1 per cent compared to this time last year;
  • Rental affordability worsened – income proportion percentage at 29.8 per cent, rose 1.2 per cent for quarter, rose 1.7 per cent compared to this time last year;
  • Loans rose – total loans at 35,565, rose 8 per cent for quarter, rose 19.4 per cent compared to this time last year; and
    Average loan size fell – average loan at $453,454, fell 3 per cent for quarter, rose 0.5 per cent compared to this time last year.

Victoria

  • Housing affordability improved – income proportion percentage at 32.2 per cent, fell 1.2 per cent for quarter, fell 0.2 per cent compared to this time last year;
  • Rental affordability held steady – income proportion percentage at 23.1 per cent, held for quarter, rose 0.2 per cent compared to this time last year;
  • Loans rose – total loans at 33,580, rose 6.5 per cent for quarter, rose 20.3 per cent compared to this time last year; and
  • Average loan size fell – average loan at $392,604, fell 1.7 per cent for quarter, rose 3.2 per cent compared to this time last year.

Queensland

  • Housing affordability improved – income proportion percentage at 26.8 per cent, fell 0.5 per cent for quarter, fell 1 per cent compared to this time last year;
  • Rental affordability improved – income proportion percentage at 22.8 per cent, fell 0.2 per cent for quarter, fell 0.6 per cent compared to this time last year;
  • Loans rose – total loans at 24,061, rose 1.4 per cent for quarter, rose 3.4 per cent compared to this time last year; and
  • Average loan size rose – average loan at $327,635, rose 0.4 per cent for quarter, fell 0.3 per cent compared to this time last year.

South Australia

  • Housing affordability improved – income proportion percentage at 25.3 per cent, fell 1.5 per cent for quarter, fell 1.1 per cent compared to this time last year;
  • Rental affordability improved – income proportion percentage at 21.7 per cent, fell 0.2 per cent for quarter, fell 0.7 per cent compared to this time last year;
  • Loans fell – total loans at 7,200, fell 4.7 per cent for quarter, fell 0.8 per cent compared to this time last year; and
  • Average loan size fell – average loan at $291,088, fell 3.6 per cent for quarter, fell 0.1 per cent compared to this time last year.

Western Australia

  • Housing affordability improved – income proportion percentage at 22.4 per cent, fell 1.2 per cent for quarter, fell 1.4 per cent compared to this time last year;
  • Rental affordability improved – income proportion percentage at 17.4 per cent, fell 0.7 per cent for quarter, fell 1.8 per cent compared to this time last year;
  • Loans fell – total loans at 12,253, fell less than 0.1 per cent for quarter, rose 2.5 per cent compared to this time last year; and
  • Average loan size fell – average loan at $330,074, fell 3.3 per cent for quarter, fell 3.9 per cent compared to this time last year.

Tasmania

  • Housing affordability improved – income proportion percentage at 23.3 per cent, fell 0.6 per cent for quarter, fell 0.5 per cent compared to this time last year;
  • Rental affordability worsened – income proportion percentage at 26.3 per cent, rose 0.5 per cent for quarter, rose 2.3 per cent compared to this time last year;
  • Loans fell – total loans at 2,204, fell 2.7 per cent for quarter, rose 1.1 per cent compared to this time last year; and
  • Average loan size fell – average loan at $240,658, fell0.3 0.4 per cent for quarter, rose 1.1 per cent compared to this time last year.

Northern Territory

  • Housing affordability improved – income proportion percentage at 19.4 per cent, fell 0.9 per cent for quarter, fell 1.1 per cent compared to this time last year;
  • Rental affordability improved – income proportion percentage at 22.7 per cent, fell 0.4 per cent for quarter, fell 2 per cent compared to this time last year;
  • Loans rose – total loans at 695, rose 1.6 per cent for quarter, rose 6.4 per cent compared to this time last year; and
  • Average loan size fell – average loan at $299,511, fell 3 per cent for quarter, fell 2.6 per cent compared to this time last year.

Australian Capital Territory

  • Housing affordability improved – income proportion percentage at 18.5 per cent, fell 1.3 per cent for quarter, fell 1.5 per cent compared to this time last year;
  • Rental affordability worsened – income proportion percentage at 18.1 per cent, rose 0.2 per cent for quarter, rose 0.8 per cent compared to this time last year;
  • Loans rose – total loans at 2,554, rose 3.2 per cent for quarter, rose 30.4 per cent compared to this time last year; and
  • Average loan size fell – average loan at $359,452, fell 4.8 per cent for quarter, fell 5.1 per cent compared to this time last year.
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Highest annual price growth - click a suburb below to view full profile data:
1.
SOLDIERS POINT 48.92%
2.
BLUE BAY 43.96%
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4.
LEMON TREE PASSAGE 42.55%
5.
NORTH NARRABEEN 40.19%
Housing affordability on par with early 2000s levels
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