Australian Housing Affordability Improves As Median Prices Declines
Due to a downfall in median prices, it has been seen that there is a rise in Australian housing affordability in the first quarter of the year 2016.
It has been noticed that there is an overall improvement of 2.7 per cent in the Australian housing affordability the quarter ending March. But, if we talk about the state wise improvement, the affordability was highest seen in Sydney where the improvement was 8.9 per cent, then comes Perth where the prices improved by 4.9 per cent, followed by Darwin with an improvement of 4.4 per cent.
Apart from these states, there was also a decline in housing affordability in some areas. Housing affordability in Brisbane fall by 1.2 per cent, whereas in Canberra and Adelaide there was a dip of 0.3 per cent and 0.2 per cent respectively.
Otto Dargan, managing director of Home Loan Experts in Sydney says, “Affordability in New South Wales remains a significant problem despite the encouraging figures”. He told Australian Broker, “It’s a major problem for first-home buyers to meet both the income and deposit size needed to buy. APRA’s changes to serviceability have been particularly tough on Sydney because first-home buyers that can afford to buy are told they can’t because of the higher assessment rates used by banks. What it means for brokers is that the refinance market is more important than the first-home buyer market. If you got a home loan two or three years ago then you can probably meet the serviceability requirements now”.