Housing affordability has declined nationally, according to a new report looking at the second quarter of 2018.
According to the research, the proportion of income required to meet average loan repayments rising 0.9 of a percentage point to 32.2%.
The figures were published in the June quarter edition of the Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report.
While it has become harder to meet loan repayments, the data suggests it is far easier for renters.
Rental affordability improved with the proportion of income required to meet average rental payments decreasing to 24.1%, or a quarterly decrease of 0.7%.
Rental affordability improved everywhere except the ACT and Northern Territory. The decreases in rental affordability were led by NSW with a drop in rental payments of 1.3% for the quarter, while Queensland saw the greatest improvement in rents year on year.
First home buyers (FHBs) are also making their mark. The number of first home buyers increased by 7.3% during the quarter, a year on year increase of 20.6% compared with the June quarter 2017. This increase was driven mostly by Victoria and NSW.
Darren Kasehagen, head of distribution at Adelaide Bank, said, “Thirty-one point seven percent of FHB’s were from Victoria, while 25.5% were from NSW. The ACT was the only market to experience a decline. The average loan size to FHB’s nationally has increased to $345,700.
“The total number of new loans for the June quarter, excluding refinancing, increased by 8.3%, but compared to the same quarter last year we have seen an overall decrease of 3.8%. The average loan size for all borrowers now stands at $409,900, an increase of 3.3% over the quarter or 6.0% year on year.
“Western Australia retained the crown as the state where rents require the lowest proportion of family income, with just 16.3% needed to meet the median rent, a figure that has remained relatively stable for the past year.
“Adelaide Bank's continuing and widely recognised contribution to improving housing affordability is to keep the cost of lending as low as we can, while providing great service through Australia's growing network of mortgage brokers.”
