This article is from the Australian Property Journal archive
Affordability breakdown
Australia
Borrowers now need 33.2% of family income to meet average loan repayments, the highest proportion required for more than ten years.
New South Wales
New South Wales remains Australia’s least affordable location, with 37.0% of family income required to meet average loan repayments. Affordability deteriorated 4.6% over the quarter and 0.7% over the year.
Victoria
Victorians required 31.3% of family income to meet average loan repayments in the June quarter. Home loan affordability deteriorated 1.8% over the quarter and 2.1% over the year, equalling the 26 year low point reached in September 2005.
Queensland
Queenslanders required 33.7% of family income to meet average loan repayments in the June quarter. The proportion of income required has remained above 30% every quarter since March 2004. Home loan affordability deteriorated 0.7% over the quarter and 2.0% over the year.
South Australia
Home loan affordability declined 4.9% over the quarter and 7.3% over the year in South Australia, second only behind Western Australia in the level of deterioration. 30.1% of family income is required to meet loan repayments. Home loan affordability is now at its lowest point since the June quarter 1995, and it is the first time in that period that more than 30% of family income has been required to meet average loan repayments.
Western Australia
The most significant decline in home loan affordability in the June quarter occurred in Western Australia, down 7.4% over the quarter and 15.5% over the year, reflecting the major increase in house prices in that state. This was the lowest level of affordability recorded for Western Australia since the September quarter 1990. 30.6% of family income is now required to meet average loan repayments.
Tasmania
Home loan affordability was unchanged in the June quarter, although it deteriorated over the year by 5.1%. It is now at its lowest point since March 1980, with 31.5% of family income required to meet average loan repayments.
Northern Territory
Home loan affordability deteriorated 1.1% over the quarter and 3.5% over the year, with 19.4% of family income required to meet average loan repayments.
Australian Capital Territory
Home loan affordability is best in the ACT, attributable primarily to median family income being between 17% and 45% greater than all other localities. Median house prices in the ACT are Australia’s third highest, behind Sydney and Perth. 19.2% of family income is required to meet average loan repayments, with affordability deteriorating 2.4% over the quarter.
Source: REIA/Deposit Power
