Sell with Confidence
Read More
News

First Home Buyers Take Advantage Of Low Interest Rates: REIA

By Laura Anderson

Housing affordability has improved across the country seeing the highest percentage of first home buyers in the marketplace in eight years, according to research from the Real Estate Institute of Australia.

REIA President Adrian Kelly said the September quarter 2019 edition of the REIA Housing Affordability Report found housing affordability improved in all states and territories, except Tasmania, while rental affordability improved across the nation.

“Although the average loan amount has risen, the increase in family income and the decrease in the interest rates have negated this rise,” Mr Kelly said.

“Similarly, with a small decrease in average rents, the percentage of income to meet these payments has also declined.

“The total number of loans increased over the September quarter by 10.0 per cent and the number of new loans to first home buyers increased by 9,270, some 13.6 per cent over the quarter and 6.8 per cent over the year.

“The percentage of first home loans to all home loans, excluding refinancing, is at 29.4 per cent. This is the highest percentage since 30.3 per cent in December 2011.

“The largest increase was in the Australian Capital Territory at 61.1 per cent, while South Australia and the Northern Territory bucked the upward national trend.”

New South Wales

Over the September quarter, housing affordability in New South Wales improved with the proportion of income required to meet loan repayments decreasing to 36.2 per cent, a decrease of 0.9 percentage points over the quarter and a decrease of 0.3 percentage points compared with the corresponding quarter 2018. With the proportion of income required to meet loan repayments 5.7 percentage points higher than the nation’s average, New South Wales remained the least affordable state or territory in which to buy a home.

In New South Wales, the number of loans to first home buyers increased to 8,246, an increase of 20.6 per cent over the quarter and an increase of 15.3 per cent compared to the September quarter 2018. Of the total number of first home buyers that purchased during the September quarter, 27.5 per cent were from New South Wales.

Over the September quarter, rental affordability in New South Wales improved with the proportion of income required to meet median rents decreasing to 27.8 per cent, a decrease of 0.2 percentage points over the quarter and a decrease of 0.7 percentage points compared with the corresponding quarter 2018.

Up to Date

Latest News

  • How Rising Interest Rates Could Affect Fixed-Rate Mortgage Holders

    Borrowers who locked in record-low fixed interest rates below 2 per cent in the past few years are likely to face a substantial increase in mortgage repayments when their fixed terms end and they roll onto their lender’s standard variable rate. The big banks now predict the official interest rate … Read more

    Read Full Post

  • How Long Does It Take For A Rate Rise To Hit The Housing Market?

    Rising interest rates are expected to have a swifter-than-usual impact on the property market as reduced borrowing power and higher mortgage repayments weigh on already slowing buyer demand. Historically, changes to the cash rate had taken multiple months to have an effect, AMP Capital chief economist Dr Shane Oliver said, … Read more

    Read Full Post