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Real Estate Institute of Australia Housing Affordability Report
Monday, March 22, 2010
According to the Real Estate Institute of Australia Housing Affordability Report it became more costly to buy or purchase a home in the December quarter 2009 in Victoria.
This fact won’t surprise any mortgage holder or any buyer in the marketplace.
In the December quarter last year the average proportion of a family income required to meet average loan repayments was 29.5 per cent, an increase on the 28.2 per cent that was required in the September quarter.
The main reason for this was the average loan repayment increased from $1,684 to $1,825, mostly as a result of the three increases in interest rates. There was also a $13,000 increase in the average loan, from $274,214 to $287,331.
The average loan repayment is, however, still lower than it was 12 months ago, a fact that is likely to have already changed, given the interest rate increase this month.
In comparison to other states and territories, Victoria had the second-highest increase in the proportion of income required to meet loan repayments, and is the third-least affordable state or territory in which to own a home.
Interestingly, there was a small improvement for renters, who on average required 22 per cent of their income to pay a median rent compared to 22.5 in the September quarter.
This latest Housing Affordability Report confirms that worsening affordability will be the most serious issue faced in the local housing market this year and that the only solution will be an increase in housing construction.
- REIV
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