In the March quarter of 2009, Australia experienced the highest level of affordability in nearly six years with the national proportion of family income required to meet loan payments decreasing to 28.6 per cent from 32.4 per cent in the previous quarter.
At the end of the March quarter, there were 44,487 first home buyers in the Australian property market; this is compared to 36,098 in the December quarter 2008 and 30,373 in the March quarter 2008.
Housing affordability improved the most significantly in Victoria during the March quarter when compared with all other capital cities. The proportion of family income required to meet loan payments decreased to 27.7 per cent from 32.15 per cent in the
previous quarter.
Rental affordability in Victoria remained unchanged during the March quarter, securing Victoria’s position as the second most affordable state in which to rent a property. The proportion of family income required to meet rent payments remains at 22.6 per cent from the December quarter 2008.
The continuing cuts in official interest rates, improving affordability and the financial assistance being provided to first home buyers have been important factors in driving the Melbourne property market. During the March quarter the average monthly home loan repayments in Victoria decreased by over $200, from $1,850 in the December quarter to $1,620 in the March quarter, however the average loan size for the March quarter decreased by 2.91per cent.
