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  • Mixed results for WA in new housing affordability report

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    Housing affordability declined in Western Australia in the December quarter 2016, according to the latest findings of the Real Estate Institute of Australia (REIA) and Adelaide Bank Housing Affordability Report.

    The report found that the proportion of income required to meet loan repayments increased 0.5 per cent to 23.3 per cent in the three months to December.

    However, on an annual basis, affordability in WA had improved by 0.7 percentage points compared to the December quarter 2015.

    First home buyers

    The number of first home buyers in WA increased by 1.3 per cent in the December quarter 2016 to 3,809, but when compared to the same time in 2015, the volume of first home buyers in the market had declined by 11.3 per cent.

    Western Australian first home buyers made up 16.4 per cent of all first home buyers in Australia, while the proportion of first home buyers in the state’s owner-occupier market was 21 per cent.

    The average loan to first home buyers increased by 0.3 per cent in the December quarter 2016, lifting to $321,000, but this was 4.8 per cent less than the average loan amount in the December quarter 2015, when the average loan amount was $337,233.

    WA rental market

    West Aussie tenants continue to benefit from market conditions, with the Housing Affordability Report showing affordability in the rental market remained steady over the quarter at 19.2 per cent.

    Additionally, there was an improvement on an annual basis, with the proportion of family income required to meet the median rent price declining by 1.4 percentage points compared to the December quarter 2015.

    National results

    Nationally, housing affordability declined in all states and territories in the December quarter 2016 - despite record low interest rates. However, when compared to the same time in 2015, there was an improvement in all states and territories except the Northern Territory.

    On a quarterly basis, the report shows that overall, the proportion of income required to meet loan repayments in Australia increased marginally by 0.9 per cent.

    On an annual basis, the proportion of income improved by two percentage points, declining to 30.4 per cent.

    For more information about the Housing Affordability Report findings, read REIA’s official statement.