A report conducted by the Real Estate Institute of Australia in June 2008 has showed that housing affordability has fallen across every Australian State and Territory for the first time since March 2004.
The figures, which consider both rental and home loan affordability, shows that:
New South Wales as the least affordable Australian State in which to own a home
Home loan holders in New South Wales are having to use 42.6% of their income to meet payments
The average monthly loan repayment has risen 7.5% in the last quarter to $2301.
Tenant’s have had to face tightening vacancy rates
Tenant’s are having to use 25% of their income (up 0.3% from the final quarter) to meet their rental payments.
Tasmania is the least affordable State in which to rent, with 29.2% of the median family income having to be used to pay the rent.
After nine months lows in the housing market, there are signs that the Australian mood is settling.
Housing Industry Association data shows that:
- New home sales rebounded by 4% in June
- Unit sales increased by 15.5%.
- Detached house sales increased by 2.6%
Whilst auction clearance rates remain jittery, Marquette Turner Luxury Homes continues to maintain that the choice of auction’s when selling property at this time is more of a gamble than it is a strategy. In terms of consumer interest in real estate, however, we have noticed a jump in the level of inquiries in the last week or so.
Looking ahead for the rest of the year, a typically more effervescent period for property sales anyway, a combination of easing inflationary pressures and interest rate cuts should certainly put a spring in the step of many Australians.