Housing affordability improves but not in Sydney

Sydney’s status as the country’s least affordable housing market has been further cemented over the past six months as prices became more affordable elsewhere.

A new report showed national housing affordability has reached its best level in seven years, but the improved buying conditions did not affect NSW.

Housing became more affordable in Victoria, WA, SA, NT and Tasmania, but stayed the same or worsened in Queensland, NSW and the ACT, according to the REIA and Adelaide Bank data.

Much of the improvement was the result of a fall in interest rates.

Sydney’s higher house prices largely offset the impact of the lower lending rates.

116 Sydney Rd, Fairlight is for sale at $2.1 million to $2.3 million.

116 Sydney Rd, Fairlight is for sale at $2.1 million to $2.3 million.

Paying off a typical mortgage requires 35.4% of the average household’s income.

Victoria was the least affordable housing markets behind NSW, with average mortgage repayments accounting for 31% of median household income, down from 32.7% in March.

The average household in Tasmania and WA spent about 22% of its income on mortgage repayments, down 0.6% since March.

Mortgages in SA and Queensland typically require close to a quarter of an average household’s income.

In the ACT mortgage payments demand just under a fifth of median household income.

Source: realestatecomau

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