WA emerges as the most affordable state in the country
Western Australia has emerged as the most affordable state in the country for housing, despite an overall decline in affordability between the September and December quarters.
Real Estate Institute of Australia’s (REIA) December 2020 quarter Housing Affordability Report has pinpointed Western Australia as the most affordable state, although the proportion of income needed to meet loan repayments had increased from 23.9 per cent to 24.8 per cent in the three months to December.
But, according to REIA, when compared with the territories, the WA slots in third, with the Northern Territory taking out the affordability crown and the ACT coming in second.
“The Northern Territory is the most affordable, with the proportion of income required to meet loan repayments 21.9 per cent. It is now more affordable to buy than rent in the Northern Territory,” REIA president Adrian Kelly said.
Focusing solely on the WA, first home buyer activity soared in the state to 7,166 in the December 2020 quarter – an increase of 41.6 per cent quarter-on-quarter and 97.1 on the year.
Additionally, the report found that WA first home buyers accounted for 15.7 per cent of first home buyers in the country and represented over half of WA’s owner-occupier market at 50.4 per cent.
The average loan to first home buyers increased 5.7 per cent during the December 2020 quarter to $360,675, which is 4.1 per cent more than the December 2019 quarter.
As for the number of loans taken out in WA during the December quarter, the final figure climbed 42.4 per cent on the quarter and 71.6 per cent on the year to 14,218.
The average loan amount was $416,746 during the quarter, which is 4.5 per cent more than the September 2020 quarter and 3.9 per cent more than the December 2019 quarter. However, the average loan amount in WA is still 17.5 per cent lower than the national average.