Housing affordability improves for four consecutive quarters: REIA

Kathleen BelstenSep 3, 2012

Housing affordability has notched up its fourth consecutive quarterly improvement, according to the latest Adelaide Bank/REIA housing affordability index.

The June quarter improvement came as the proportion of income required to meet loan repayments decreased 0.8 percentage points to 31.9%.

The ACT remained the most affordable state/territory to buy a house, with the proportion of income required to meet loan repayments in ACT at 17.2%, given higher than average salaries.

New South Wales remained the least affordable, with the proportion of income required sitting at 37.4%.

“Compared to the 2011 June quarter, all states and territories recorded improvements in housing affordability,” says real estate institute of Australia president Pamela Bennett.

Median house prices increased 1.4% over the June quarter, with Darwin recording a 10.7% increase from last year.