According to the latest report from Moody & # 39; s Investor Service, Australian homeowners and potential buyers have experienced improvement in housing affordability, with the share of income needed to meet repayments declining over the course of the year until September.
Australian households with two employees needed 23% of their monthly income to pay off mortgages on new loans in September. This percentage was below the 10-year average for the month of 26.4%.
Two main factors led to the improvement in affordability over the period: rate cuts and falling house prices due to the impacts of the COVID epidemic- 19.
In the five months ending in September, house prices fell an average of 1.5% across Australia. However, the prices of the month were still 3.2% higher than last year.
"House prices are likely to be under some downward pressure due to macroeconomic weakness, although the impact may be lessened due to low interest rates," the report says.
While there are concerns that household incomes are under pressure as government support measures end in the coming months, the report says the risks will be offset by the effects of lower prices. rates and prices.
"We expect housing affordability to continue to improve moderately over the next 12 months," the report says.
Of the five major capitals, Perth remained the most affordable for buyers. New borrowers in town only need 15% of their income to pay off their mortgage.
Sydney, on the other hand, remained the most expensive. However, the proportion of income needed to meet repayments in the city has increased from 30.9% last year to 29.9% this year.
The table below presents the housing affordability indicators in the five major capitals of the country:
Top suburbs:
Gladesville
,
Alexandria
,
wiley park
,
coolbellup
,
leumeah
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in real estate, it is important to ensure that you not only have the lowest available rate possible, but also have the right loan features for your needs. needs.
You only need to fill in a few details below and we will then arrange for a local mortgage broker to contact you and determine the characteristics or types of loans that suit your needs. We'll even help you with the paperwork. In addition, an appointment is free.
We value your privacy and take all your information seriously – you can check
our privacy policy here
