As interest rates continue to shrink on home loans, the ability for people to buy their own home also reduces.
According to the REIA Housing Affordability Report for the December 2019 quarter, affordability has declined another two per cent.
In practical terms this means the proportion of income required to meet loan repayments has increased to 34.7 per cent, equating to a two per cent increase over the quarter.
“Across Australia in the last quarter, housing affordability has declined in all states and territories except for the Northern Territory where there was an improvement,” said REIA president Adrian Kelly.
Download the full media release here:
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REIA News – December 2020
MYEFO POINTS TO GAINS FOR THE PROPERTY MARKET PROMPTED BY QUICKER ECONOMIC RECOVERY
REIA WELCOMES STATE OF THE NATION’S HOUSING REPORT
RE-ELECTED REIA PRESIDENT, ADRIAN KELLY SAYS MEMBERS ARE REPORTING STRONG RECOVERY AFTER CHALLENGING YEAR
AUSTRALIA’S HOUSING MARKET PROVES RESILIENT OVER 2020 WITH PRICE RISES IN MOST STATES