WA housing affordability improves
WA housing affordability improves
Posted on Monday, December 08 2014 at 10:29 AM
There’s good news for homebuyers according to the latest Adelaide Bank/ Real Estate Institute of Australia housing affordability report for the September quarter.
The
report shows an improvement across Australia in housing affordability with the
proportion of income required to meet loan repayments decreasing by 0.5 per
cent points to 30.4 per cent during the September quarter.
President
of the Real Estate Institute of Western Australia (REIWA), David Airey, says the
market in WA is even more favourable because the proportion of family income
needed to meet average loan repayments dropped from 26.6 per cent in the June
quarter to 25.9 per cent in the September quarter.
“This means that homebuyers in WA can avoid ‘housing
stress’ by remaining under the 30 per cent threshold regarded by economists as
the safest benchmark for comfortable living with a balance between income and
housing expenditure,” Airey says.
The median purchase price for first homebuyers in
September was $450,000 in metropolitan Perth and $355,000 in the regions. Of
all Australian first homebuyers who purchased during the September quarter,
25.1 per cent were from WA.
The Reserve Bank left the cash rate on hold at 2.5 per
cent this year, which marks one of the longest periods of interest rate
stability.
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