Every quarter we receive a housing affordability report that is commissioned by Adelaide Bank and the Real Estate Institute of Australia.

As mortgage brokers we particularly like this document because it details the total number of loans taken out in each state. However, from your perspective we thought a summary of the affordability data would be useful.

There were a number of other interesting observations that came out of this report:

1. Over the last 12 months median family incomes increased in every state and territory.

2. The average loan size increased by less than 5% in every state and territory (except Queensland with a very small decline).

3. The number of loans to first home buyers increased in every state except QLD & NSW where substantial reductions occurred.

4. Australian Capital Territory remains the most affordable state or territory in which to buy a home.

The current low interest rate environment is obviously having a significant impact on housing affordability and many investors are entering into the market as a result.

We are also finding that many investors are fixing their interest rates in order to prolong these historically low levels.

As always, if you would like to discuss your property or finance ideas, please do not hold back. We are waiting for your call.

Michael Daniels, B.Com
Smartline Personal Mortgage Advisers
State Manager NSW & ACT

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