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Housing affordability improved over the June 2013 quarter, according to the Adelaide Bank/REIA Housing Affordability Report.
The report shows that the percentage of income required to meet loan repayments decreased by 1.2 per cent to 28.7 per cent.
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General manager of Adelaide Bank Damian Percy said successive reductions in interest rates mean housing affordability has been improving.
“The proportion of family income required to meet loan repayments is now at its lowest since the June quarter of 2003,” Mr Percy said, adding that loan repayments are now on par with rental payment in some areas.
“Interestingly, the proportion of family income required to meet average loan repayments in Western Australia and Tasmania is almost exactly the same as that required to meet median rental payments,” he said.
“This factor, combined with recent changes in concessions to first home buyers in WA could help explain the surge in first home buyer activity in these states.”
