Housing Affordability Shows Signs of Improvement

Housing Affordability Shows Signs of Improvement

By: Nfinity Financials0 comments

People have been talking a lot about houses in Australia for years. People worry that they cost too much, which makes it hard for others to buy them. But now, there’s some good news. The Real Estate Institute of Australia (REIA) says that housing affordability become more improved for the first time since 2021.

In early 2024, it got easier for people to afford houses. The REIA said that the amount of money needed to pay back loans went down by 1.0 percent compared to before, which means it dropped to 46.7 percent. This good change happened because people started earning more money, and the interest rates stayed the same at 4.35 percent.

Experts said this improvement is a big change from the increases we’ve seen since March 2021. Especially, places like New South Wales, Victoria, Tasmania, and the Australian Capital Territory saw housing affordability. In other states, things stayed about the same or got a little worse.

Even though things are getting better, fewer people are buying their first homes, with a drop of 17.9 percent this quarter. But it’s important to know that compared to this time last year, there are still more first home buyers, which shows a trend of more people buying homes. Pilkington said this drop in first home buyers happened everywhere, but some places saw bigger decreases than others.

One reason fewer people might be buying their first homes is because it’s getting more expensive to live. But since it’s getting easier to afford houses, there’s hope this trend will change. Also, the average amount of money needed to pay back loans dropped by 1 percent, which should help people thinking about buying a home.

People earning more money and the Reserve Bank of Australia not changing interest rates have really helped make it easier for people to afford houses. This means it’s more doable for people who want to buy a property.

But there’s not only good news-renting is getting a bit harder in all parts of Australia. More of people’s money is going toward rent, showing that renters are still facing tough times.

In the future, whether it stays easy to afford houses will depend on different things like people earning more money, interest rates, and what the government decides to do. Even though things are getting better now, we need to keep working hard to make sure everyone can afford a home in the long run.

Conclusion

The fact that it’s getting easier to afford houses in Australia is good news for people who want to buy one. With the economy doing well and interest rates staying steady, we’re hopeful that things will keep improving for everyone. But we also need to think about making renting more affordable too, so we can solve the housing problem for everyone.

If you are looking for more such information on the Australian housing market visit our articles or directly Book a Consultation Call. if you want more individualized guidance or assistance, Call us at 1300 GET LOAN.

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